Real Estate

tracking capital expenses & real estate ROI question

  • Last Updated:
  • Jul 14th, 2020 8:18 pm
[OP]
Newbie
Jul 12, 2020
7 posts
2 upvotes

tracking capital expenses & real estate ROI question

Hi folks
Wondering what have been your biggest challenges in tracking your real estate ROI?
I own a couple of rental properties and after careful research online, have not been able to find a good system to track capital expenses (for claiming taxes),
and no tool to chart return on investment (with and without equity building).
If you have a tool you use, could you share? What are the alternatives you consider & pros & cons?
Thanks!
4 replies
Deal Addict
Nov 22, 2004
1547 posts
642 upvotes
I use Excel. It's simple and straightforward enough for me instead of building some dependency on some app. Bookkeeping can be a bit of a chore but I've found having a running document with short comments and amount helps tremendously. For that I just use the notes app on my phone/laptop. My objective is primarily to have decent working papers for tax purposes so I don't have any charts and other bells and whistles on it at the moment.

If people here are interested, I can create an Excel template that people can use for property management that's more user friendly.
Realtor @ Royal LePage Ignite Realty
Jr. Member
Jun 2, 2018
119 posts
71 upvotes
Clueless Fox wrote: I use Excel. It's simple and straightforward enough for me instead of building some dependency on some app. Bookkeeping can be a bit of a chore but I've found having a running document with short comments and amount helps tremendously. For that I just use the notes app on my phone/laptop. My objective is primarily to have decent working papers for tax purposes so I don't have any charts and other bells and whistles on it at the moment.

If people here are interested, I can create an Excel template that people can use for property management that's more user friendly.
That'll be tremendously helpful! Thanks for offering
[OP]
Newbie
Jul 12, 2020
7 posts
2 upvotes
Thanks! Would love to get the sample excel sheet. My problem with Excel has been that it has been hard to share w my spouse/access on different devices and I need to see real return with or without equity building MoM. is it easy to maintain your files in a single view if (alas) one day you have 10+ properties?
Deal Addict
Nov 22, 2004
1547 posts
642 upvotes
Mondaynightmare wrote: Thanks! Would love to get the sample excel sheet. My problem with Excel has been that it has been hard to share w my spouse/access on different devices and I need to see real return with or without equity building MoM. is it easy to maintain your files in a single view if (alas) one day you have 10+ properties?
I do have multiple properties and it honestly came down to the bookkeeping habit more than anything else. The template showed what item to enter but finding the data in bank statements, bills, mortgage statements was more of a chore. The other thing was tax treatment on how you want to show your expenses, which varies based on the approach you use. Lastly, with Excel formulas, a little care is always needed that you don't accidentally add/remove something which throws off your numbers, but that's just a technical thing.

In terms of sharing the document, I use dropbox across my devices which keeps everything synchronized. You can try using that or Gdrive or OneDrive.
Realtor @ Royal LePage Ignite Realty

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