If you are seeking to purchase an investment property or consider purchasing a rental property, you will need to generate a real estate income statement. This is a financial report that summarizes how much money the rental property makes per month and compares this with how much it costs and any monthly expenses the investor will need to bear.

In order for you to make an educated decision on whether your investment will be successful, or whether it's time for you to find another portfolio elsewhere, it's important that you generate an income statement.

In fact, when you purchase investment properties, it's important that you create a real estate income statement for every single property that is in your portfolio. In this way, when tax season comes around and there is any confusion about whether or not you made enough money or whether or not a property made a profit in your portfolio, you will have statements on hand to show what went into the purchase of each property and what came out. When you have statements on hand for each property, it will make it much easier for you to keep track of what needs to be done in order to maintain the income-generating aspect of your investment portfolio.

As such, it's very important that you learn how to create income statements and that you invest in software that will help you write these reports. In this article about investing in rental properties, we will look at the software that is available on the market today and our favorite program so far.

Investing in rental properties can be one of the most profitable ways to put money into your portfolio. In this article, we will share with you how to create an income statement and some of the best tools you can use to generate these types of reports for your investment property.

What Is A Rental Property Income Statement?

Before going further, it's important that we define exactly what a real estate income statement is and what it is not. An income statement is not a cash flow report because you're not actually tracking if you have made a profit or not on a monthly basis. Rather, an income statement is more of a snapshot picture of what the rental property's expenses are and how much money you can expect to make in the future.

The income statement will show you exactly how much income your property generates per month or per year and it will also show you what the cash flow is on a monthly basis. Then, in the end, it will outline all of your expenses, including any mortgage payments that you are going to have to pay, and then subtract these from the net income so that you can see how much money was generated for the month.

An income statement is a very useful tool when you're trying to purchase investment properties. You can use these reports to determine whether or not a property will be profitable for you in the future, and also how much money you can make on it at various points in the future.

Start generating income statements on your rental properties today. It's easy, free, and won't cost you a dime. You have nothing to lose and everything to gain by using these online services!

Where Can I Find A Rental Property Income Statement?

In order for you to generate an income statement for your rental property, you'll need an accounting software program like Better Capital that is specialized in tracking investments. A few others programs are a great resources for tracking your investment portfolio. You can also use the software that comes with your accounting program. However, if you've tried to log into the program to make a report, you'll likely find that it's difficult to find the chart or the link to generate an income statement on your financial reports.

Better Capital is a great software program that allows you to track your investment holdings from one central place. You can track your income and expenses in order for you to be able to generate an income statement without having to do all of the work yourself. Find out how:

You first open up the program and click on the tabs at the top of your financial reports. We've found that this software is very easy to use and we have never had any issues creating a report or getting an income statement on our investment portfolio. Once you've found where you need to go, click on "Income Statement" from the drop-down menu and then click "Generate" at the top of your screen.

The software will ask you what property you want to track and it will show a list of all of the properties that are in your inventory. Simply select the property that you are tracking income for and then hit enter. Now, you'll be able to see the income statement that you're looking for.

Better Capital has many great features including landlord reports and general rental property reports. You can use these reports to determine whether or not your investment is going well or if there is room for improvement upon future purchases of investment properties.

For more information, you can visit Calculate investment property return without a spreadsheet.