Hi All, I just closed on my first investment property yesterday!
I’m trying to update my personal finance spreadsheet, but am unsure if I should add the value of the property to my assets column and the loan amount to my liabilities column. Or should I have a separate spreadsheet just for the investment property and not have this in my personal finance spreadsheet at all? The property is in my name, not an LLC. I do plan on having a separate spreadsheet to track rents and expenses, it’s more that my personal finance spreadsheet seems messed up now – the money for the down payment was in a high yield savings account and since I used it to close on the property, my net worth took a huge hit.
Would any experienced real estate investors have advice on how to keep good records? Can anyone share their spreadsheets for tracking personal finances and real estate? I would really appreciate it!
Here are the numbers:
Property appraisal: $129,000
Price: $125,000
Down payment: $25,000 + closing costs ($9,440.58)
Loan amount: $100,000 @ 4% 30 year fixed
P&I: $477.42
Estimated escrow: $273.53
Estimated total: $750.95 per month
Management fee: 6%
Rents: $1,350 per month
The property is tenant occupied with a 1 year rent guarantee from the property management company. Rehab is gorgeous and has a 1 year warranty. At least 5 year service guarantee on roof, HVAC, and water heater.
The closing costs were much higher than anticipated, more than double what Norada (turn key provider I used) estimated; being this is my first property I definitely made a few mistakes.