Rental property accounting using Quickbooks Online

Hi there, @desireeb.

Thanks for visiting us here. I'll share some information about recording mortgage. This lets you show the principal, interest, and escrow payments. Since these accounts will served as for illustration purposes only, I'd still recommend consulting your accountant for the accounts you need to use.

You'll have to create the following accounts:

• Loan account - its should be a long term liability account.
• Escrow account - use Other Current Asset account.
• Expense account - for the interest 

To do so, just go to Accounting, Chart of Accounts, and then select New. For the detailed steps, check out this guide: Add an account to your chart of accounts in QuickBooks Online.

For recording mortgage payments, you can create an expense transaction dated January 1, 2022. If you're trying to record it using a journal entry, you can seek assistance to an accounting professional. This way, you're debiting and crediting the right accounts.

I'm also adding this link to help you manage other QuickBooks-related tasks. It contains topics with articles to guide you along. Just look for a title that'll fit your concern: View all help for QuickBooks Online.

Please don't hesitate to swing by if you have follow-up questions about mortgage accounts. I'll be around for you. Take care and have a great day ahead.

@desireeb 

When setting up each property, you want to know the original cost and the 1-1-22 loan payable balance.  Then, you can enter each property with a journal entry dated 1-1-22:

Then, you can enter the 2022 monthly payments as usual.

Thank you!  I was thinking if it wasn't a bank account, it would have to be equity.  But a quick follow up question I also have is, is it ok to set up an equity account for each property to use for that journal entry individually for each one?  Or does it have to be the Opening Balance Equity account?

Thanks again!  Really appreciate the help!