Posted by JPiper on February 15, 2001 at 22:24:41:
When I buy a property it is entered as a subaccount under “Property”…a fixed asset type account. Obviously my cost to buy the property is my initial entry. Then for each expenditure I record it under the same subaccount…which has the effect of increasing the total of that subaccount…basically keeping a running total. You simply debit the property subaccount…ie 123 Anywhere Street…and then credit your checking account, credit card, etc. This does not take class, job, etc. You can pull a report up on the property itself, which will show all expenditures. The problem is that it may not break the expenditures down in ways that you may want them broken down. It may be that with QuickBooks Pro there may be a feature that can add detail here…but I don’t think it is on the standard QuickBooks software.
Once the property is rehabbed, if you rent the property you should set up class tracking. This will track your revenues and expenses by property (class). The reason you can’t use “class” for rehabs is that your “expenditures” are not “expenses” but are capital items…and therefore are property added to your cost basis in the property. But of course once you have the property rented then you will have expenses which can be tracked by class. Reports are available by class as well.
I set tenants up as “customers”. This enables a number of functions that I like and use…like statements, accounts receivable, customer reports, etc. I have various things set up as items, such as rent, late charges, option consideration, utilities, etc. The statement function can be “memorized” by QB so that the information is automatically generated at a particular time of the month…nice for tracking and invoicing if you do it.