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How To Track Your Rental Properties In Quicken - YouTube
Channel: AssetRover
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hey investors this is bill carney with
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assetrover we're going to show you how
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to save time tracking rental property
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expenses along with your rent and other
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income well it's been almost a month
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since we finished our taxes this year
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and if you didn't have a good way to
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organize your finances it was one of the
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worst days of your life if you are on
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top of things you found a way to do it
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via paper basic spreadsheet or maybe
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even an accounting or personal finance
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tool with software you may have
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downloaded or accessed online so why
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would we track expenses anyway there's
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really two main reasons why we track
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rental property expenses number one is
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taxes and then number two is just for
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budget purposes how should you track
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expenses on your computer you have three
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different options out there that are
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some of the leaders in personal finance
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quicken being one of them also you have
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mint and you have QuickBooks now at one
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point you could have used Microsoft
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money but since that is now discontinued
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you aren't left with that option anymore
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so let's compare the three side-by-side
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quicken is comprehensive software that
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is good for small businesses for your
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own personal finance and more recently
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rental property management mint is an
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online personal finance solution it's
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free
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it has good automation it links to all
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of your bank accounts seamlessly except
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it really is limited to personal finance
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the third one is QuickBooks that's a
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powerful full-featured small business
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accounting tool and it's very scalable
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the only issue we see with that is it
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may be a little too much for new
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investors just starting out with maybe
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only a few rental properties so we still
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feel that the desktop solutions the way
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to go for tracking your expenses and
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your income from rental properties at
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this time now here at asset Rover we
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don't have any affiliation with quicken
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or anything like that we're not
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receiving any endorsements from the
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company I just offer this suggestion
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solely because it is extremely helpful
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to me and many others out there who do
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real estate investing and need to track
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their income and expenses truthfully any
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financial tracking software will work if
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you use it and you keep up with it
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quicken has been around for many years
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so it has had a lot of time to develop
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into the full-featured program that it
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currently is quickens rental property
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manager it's easy to use and it's
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designed for real estate investing
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businesses one thing we like about it is
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that you can set up an unlimited number
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of properties via tags so what we'll
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show you in this video is we'll show you
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how to track income and expenses in
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quicken we'll show you how to tag income
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and expenses for each property and we'll
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also show you how to set up your rental
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property and a mortgage if applicable
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okay so here's Quicken 2014 rental
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property manager there is a version of
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2015 out there but we'll go ahead and
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show you 2014 because that's the version
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we're currently using what we'll do is
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we'll go ahead and enter in a new
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expense
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let's just put 1001 as a dummy entry for
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a check number and now we will just go
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in and select our payee let's just say
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Jim's cleaners for example let's say
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that we had to get some cleaning done on
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our new rental property that we just
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purchased so now you can select the
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category that you want to assign this to
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you can see that there's a number of
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different options under rental property
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expenses so let's go ahead and just
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select cleaning and maintenance now
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here's the magic part with the rental
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property manager so what you can do here
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is you can tag the property and then
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assign all income and expenses to that
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particular property let's set up a new
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tag and we'll call it property one and
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then we'll go ahead and hit OK let's
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just say it's a payment of 50 bucks then
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we can go ahead and either click Save or
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just hit enter and then we'll go down to
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the next line in the register let's
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enter in another expense we'll do check
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1002 for example and let's just set up a
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mortgage payment here for Wells Fargo
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Bank
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we'll have categories again and a whole
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list of rental property expenses so what
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we'll see here is that we don't have any
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expense categories for mortgages well
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the nice thing about quicken is we can
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just go ahead and add the category that
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we want here now we're actually going to
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go back later and set up a mortgage for
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the property but I did want to show you
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at least this feature for now so let's
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set up a category called mortgage which
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you'll notice here in this drop-down
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that you can make this a subcategory of
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another main category if you would like
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in this case none of the main categories
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fit for what we need to do for a
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mortgage so we'll just go ahead and just
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create this as a completely new category
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for now so you can see how to create an
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entirely new expense in a new category
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we'll go ahead and label this property
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one so it stays under the same exact
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property listing that's an example let's
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just say five hundred dollars for a
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payment here well let's go a rent in
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here while we're at it we'll do a
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deposit DP let's say Jane tenant paid us
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we'll say monthly rent received as a
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memo and you'll see that in the rental
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property income there is a rinse
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received let's tag it property one again
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and let's give ourselves a nice thousand
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dollar deposit all right now we have
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income coming in for our property and a
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couple of expenses for example now what
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I want to show you is how this can be
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used for tax benefits go into your
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category and look at all of your
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categories on a list if you go down and
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say show full list you can see the
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entire list of categories under rental
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property expenses look to the right and
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notice how they all say Schedule E for
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your tax form you can see that the
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rental property income is in the same
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way so Schedule E this is a form from
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the IRS if we just slide through here
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and check out this form you'll see down
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here that we have all the expenses from
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line 3 all the way down to line 19 line
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19 being reserved for other if you
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happen to have that all those match
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perfectly with quicken so that means if
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you set everything up correctly in the
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right categories
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it will be very easy for you to export
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this give it to your accountant and have
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that form filled out automatically for
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you okay now it's time to add an asset
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account for your house once you do this
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you'll be able to set your house up and
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you'll also be able to set up the
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mortgage later as a nickname we'll call
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it p1 and then also put the address
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after it this lets you look at each
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individual rental property that you have
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and look at it as p1 p2 p3 and so on as
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you set this account up you'll be able
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to choose if it's a personal business or
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rental property transaction since we're
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just tracking our rental properties
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right now let's pick rental property
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transactions now you can choose when you
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pick the house up let's just select five
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one of 2015 you can enter the purchase
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price which will just put 100,000 for
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now and then we'll also estimate let's
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just say one hundred thousand to make
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things simpler hopefully your purchase
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price will be less than what it's worth
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now is there a mortgage on this house
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this is where you can actually pick if
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you have a mortgage and also select the
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bank that you have a mortgage with now
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you can make the loan the same name if
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you want but we like to make it
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something different so now the details
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will be p1 mortgage now you can look on
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your balance sheet and see which one is
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the mortgage and which one is your
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property without having to do a whole
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lot of thought we'll select loan type
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mortgage opening date will say May 1st
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of 2015 now usually when you have a 20
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or 25 percent down payment chances are
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that your opening balance may be 80
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thousand or 75 thousand will just make
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the numbers easier by putting 100,000 in
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here you can also set up a loan payment
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reminder if you would like to make sure
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that every month you at least have a
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reminder that tells you hey go ahead and
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pay your mortgage if you have bill pay
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you might even be able to set quicken up
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to have it pay the mortgage
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automatically for you but most banks
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have automatic deductions from your
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checking account okay so now that you've
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added your mortgage it'll ask you if you
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want to link this to one of your
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properties go ahead and just select the
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property that we set up already on 742
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Evergreen Terrace
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now it's linked and now your account has
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been added now what you'll see here in
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the main screen is that you'll have bill
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and income reminders where you'll see
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the bill and income reminders you can
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right click and you can select 30 60 90
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days or you can show no reminders at all
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what's nice here is you can see the
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reminders that we set up for the p1
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mortgage so how about that it actually
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comes up and tells us about reminders
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that we can do in the register itself if
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you go up to the upper right hand corner
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and click on the blue clock you'll see
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that you can set up reminders within
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your account register so now that we see
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that the mortgage payment is actually
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scheduled for June and that's our first
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mortgage payment let's just go ahead and
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delete out that dummy entry we had for
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the mortgage and then what we'll do is
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once the mortgage becomes due on June
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1st it will automatically send us a
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reminder except the transaction and put
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it into our checking register now let's
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go into the future transaction and see
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what quicken already automatically did
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for us it went and set this up as a
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split transaction which means it will
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split the mortgage and the interest and
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allow you to look at both of those and
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then the interest will get recorded
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under the interest category and then the
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actual mortgage itself the principal it
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will deduct your p1 mortgage balance
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okay let's turn off our reminders within
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the register now another nice thing is
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you can actually go into the p1 mortgage
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itself and see how much you owe on the
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property now you'll see that we can show
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a whole years worth of mortgage payments
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in the future now that doesn't look too
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good for us because where's our income
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all we see now is a whole slew of
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mortgage payments that will certainly
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drive us into the red as shown here
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don't worry about that because we can
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also add reminders for income and the
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deposits that we receive this is going
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to help us forecast into the future what
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our balance will look like in the
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checking account
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so you just right click and pick income
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reminder and it'll all be filled out
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automatically for you you can double
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check and make sure it's set up on the
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day of the month that you prefer in this
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example of course we'll set six one as
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the next due date we don't want to do it
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now we've already entered one for this
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month in May all right so there we go
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now we have all of the income and all
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the expenses at least the mortgage
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payment and the monthly rent income
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monthly we'll go ahead and clear that
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away now one nice thing of course is now
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that you're doing all these tags you are
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able to do reports on your income and
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expenses for each property you can see
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here on our itemized tags for year to
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date there's the income and there's the
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expense for property one let's make this
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interesting now let's go ahead and enter
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more income and more expenses for a
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second property let's throw our buddy
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Jim's cleaners back in again now we'll
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do a new check number and now we'll tag
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this as property two let's get some
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income in for this second property as
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well now we'll have a new tenant we'll
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have Joe tenant come in here and we'll
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put a similar memo in here and let's go
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to our rental property income and pick
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rinse received again and now we'll take
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it property two will do another $1,000
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deposit in this case now let's go back
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to our Schedule E report and check this
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out now you get to see everything in
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that Schedule E in a list in your report
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we have it set up in tags so you can see
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each property you can also go into
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itemized tags and look at your year to
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date expenses there and see how the
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income and expenses are set up and
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broken out per property that's going to
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go perfectly into your schedule e where
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you have a B and C for property one two
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and three you can sort these any way you
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like
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so let us know what you think how do you
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save time tracking rental property
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expenses do you even track your income
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and expenses do you do it in the old
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paper format or have you graduated to
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software like quicken or maybe something
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else online that at least gets you some
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of the basic income and expense tracking
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do you have any tips that might make tax
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time low-maintenance and simple or is it
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just a total nightmare for you please go
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ahead and leave us a comment below this
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is Bill from asset Rover hoping you have
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a great day
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you
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