Split mortgage payments into three accounts. Principle (added to inital invest) would show equity in property, equity savings (for escrow mo
I would like to see mortgage payments split into three accounts. One for principle which would be an equity account and starting with initial investment show equity in the property, Interest - an expense account (which you now have), and another equity for escrow payments. This would then be credited when insurance and taxes were paid and the
appropriate expense account debited.
Prentiss, Angel commented
This is a feature lacking that has cost me extra time. I've used the workaround that Drew outlined in 2016. It works but it's extra time and energy that programming can solve by letting us enter principal, interest and escrow in one entry.
It may not be a big deal if doing this for 1 or 2 mortgages. More than that is tedious: make an entry and then reopen to split the transaction...
Alternatively, launch a spreadsheet style rows x column format where we can enter multiple mortgages for principal, interest, escrow.
Here is my workaround:
I added an "Mortgage A Escrow" account and a "Property A Equity" account in the accounts tab. This way I could set up 2 additional accounts for each property that I own.
Now when I make a mortgage payment I post an expense to my main account for the mortgage interest. Then I use the "transfer" button to move the escrow portion of the payment to the "Escrow" account and the principal portion of the payment to the "Equity" account.
When my property taxes or insurance payments are made I debit the "Escrow" account for the expense. You can then audit your escrow balance against the mortgage statement from your mortgage provide.
Using this system gave me a heads up that my escrow account wasn't originally funded properly. I knew it before the bank even contacted me about it!
It's a little more manual but I've been using this system for about a year now and I actually prefer it.
If you have a question I can send a screenshot to you via email.
Wolfeld, Bruce commented
Any progress on this suggestion? Note payments are an integral part to any real estate investment.
Turner, Kathy commented
This would be great to add to the 1099 form so when I give it to my accountant it is all there in one spot.
Meerman, Leo commented
It's actually ridiculous that we can't make the mortgage payments do this within rentec. Big minus for the lack of this feature.