michaelsieg wrote: ↑
Sat Jan 11, 2020 11:33 am
I am trying to include our direct real estate returns with your spreadsheet and I am not sure how to do it.
I was just curious if someone else has used this spreadsheet to track real estate returns – I don’t want to make it complicated but I think I should start to formally track our real estate returns.
Michael, I don't have real estate investments other than whatever is included in my global balanced index One-Fund Portfolio
If I did have a rental investment, I would try to keep things simple by separating the real estate investment and its expenses (except those related to the mortgage) in one sheet, and put the mortgage and its payments on another sheet.
In the real estate investment sheet, every month I would count all income (e.g. rent) as withdrawals and all expenses (maintenance costs, repair costs, advertising, administrative costs, taxes, utilities, etc.) as contributions. I would include the initial entire price of the rental, including any transaction-related expenses, as a contribution and the final after-expense proceeds of the sale as a withdrawal. Every month, I would try to estimate a current market value of the rental minus the costs of selling, and I would use this amount as portfolio balance.
In the mortgage sheet, I would count the initial mortgage amount as a withdrawal. Every month, I would count the mortgage payment as a contribution and use the remaining principal amount of the mortgage as a negative
portfolio balance. I would count any additional borrowed money added to the mortgage as a withdrawal, and any additional mortgage payment as a contribution.
As I said, I don't have real estate investments. This is only how I think I would do it if I did.