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Updated over 8 years ago on . Most recent reply
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Why use Quickbooks for buy n' holds?
The past days I'm researching ways to better systemize better my REI. So far since I have only 4 rentals the free version of RentecDirect works just fine, and if I decide to get the very affordable pro version I will be able to use more of their automated features. This will make my accounting pretty easy.
What I dont understand is why start using Quickbooks (with the added cost and the hassle of setting it up and learning it) in addition to the property management software when the software itself is capable to produce all necessary reports for your CPA and it provides you everything you need to run your PM business . In addition to that it cant be synchronized with Quickbooks, but again I dont understand the benefit...
Now as far as my fix and hold or sell there I do have an accounting nightmare and thats the reason I'm exploring QB...too many expenses in different categories plus the difference between improvement and repair that you need to have separated when you buy fix and hold...
Any hybrid investors out there that can help me with this??
Most Popular Reply
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In your situation QB is the answer, or Xero. ...... Most other Landlords are NOT in your situation. ....... Any time you make investments in your properties at the extent you do, QB is the answer. ....... Let me be clear, with only annual maintenance QB is overkill. Too much work for a simple IRS Schedule E filing (revenues and expense with one depreciation item). .......... However you are investing in much more than repairs (capital investments) and this requires special IRS documents, detailed accounting and depreciation for the long term useful life of those capital investments. A new roof is not repair, it is a capital investment. A new kitchen is not repair and is a capital investment. These are some examples where QB or Xero is required.