What are best practices with setting up Rental Properties and Corresponding Loans in Quicken?

Hello,

I recently purchased a couple of rental properties and I would like to use quicken to track all the money flows and their corresponding loans.

What are the best practices?

How do I properly set up a loan in Quicken for a rental property? Do I set up the loan's account intent as a liability or credit? Within the loan account do I tag the opening balance of the loan to the associated rental property?

Thanks!

Michael
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Comments

  • Quicken Hugh
    Quicken Hugh Alumni ✭✭✭✭
    Hello omega,
    You have a great idea to use "best practices" for your rental properties.

    Please start by adding a rental property in the Windows Quicken Home & Business version. The more details you include, the better Quicken can help you manage your rental property and understand your monthly cash flow.

    You can then link your rental property loan to the rental property asset within Quicken.
  • omega4e
    omega4e Member ✭✭
    Thank you. How do I enter in the down payment transaction for the property? The down payment went from my checking account to the closing agent.
  • omega4e
    omega4e Member ✭✭
    Hello, I am trying to properly set up a rental property in quicken and would like to record the downpayment. How do I go about doing such? In my loan account should I put the purchase price of the house and deduct the downpayment from there?
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    edited March 2020
    Hi @Omega4e,

    The entry for recording the downpayment, the loan and the purchase of the property is:

    Rental Property Account (asset account)                          100,000.
    Checking Account  (deduction for downpayment)                                    20,000.
    Mortgage Account (liability account)                                                           80,000.

    You should therefore start by:
    1) adding a new account in Quicken for the asset - "rental property"
    2) adding a new liability account for the loan - "rental prop - mortgage"
    3) then make the above entry in the checking account (or other cash account) from which you made the downpayment.

    The "purchase price" would be entered into the "asset account" through the above entry.

    let me know if you have any other questions.

    Frankx

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  • omega4e
    omega4e Member ✭✭
    Thanks Frank. Where should I have the Checking account deduction for downpayment go? What should I have the payee be for the payment? Thanks
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Hi @ omega4e,

    So the entry in Quicken - to set-up the property, set-up the mortgage loan, and to record the downpayment -  would look something like this:


                      Quicken H&B-Subscription Ver. 34.24 - Windows 10-Home Version
                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    And the Payee would be the entity that you made the downpayment to.

                      Quicken H&B-Subscription Ver. 34.24 - Windows 10-Home Version
                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

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