Monthly budgeting for a small rental portfolio
(spreadsheet nerds rejoice!)
Excel or google sheets is a fantastic tool to use for this application. It is critical to keep in mind not only the monthly costs but the yearly costs associated with owning investment real estate. Here is a modified spreadsheet of how I manage 3 properties:
How to use this spreadsheet:
Very simply, this group would represent all properties in a single bank account.
- The Current Balance above is what is currently in the bank account
- I’ve color separated each of the 3 properties
- This represents what a budget looks like at the beginning of the month before any rent is collected and debts/bills are paid
- As rents come in and the current balance increases, the entries in cell H6-H9 get deleted
- As loans get paid and the current balance decreases, the entries in H3-H5 get deleted
- As any monthly bills come in, they get paid immediately, entered in H10-H23 (like I have the insurance bill and water works bill as example); then deducted from the assigned “Savings” cell in column C
- So you can see that the you may have $3200 in the bank, but you really only have $755 worth of cashflow profits to play with once everything clears.
Free tools are the best. Contact me on my facebook page below with any questions on how to use this spreadsheet!
Engagements, opportunities, and deal flow are welcome through his Facebook business page – Justin Corritore