Once your real estate portfolio grows beyond a handful of assets, the answers to simple questions like, "How much outstanding debt do you have?" and "What's your monthly rental income?" can get very complicated. That's where the Schedule of Real Estate Owned becomes essential. This key report provides a high-level summary of your entire rental property portfolio all in one place.
Where to Find the REO Report
Your Schedule of Real Estate Owned is available on the Reports page to Pro users. You can read more about Stessa Pro here.
The report is available as a PDF, which you can view on-screen or download. You can also export the SREO as an Excel file for more flexibility.
How to Make Sure Your SREO is Complete
The SREO pulls key information from many different places across your Stessa account. Here's where to find and update each key element of the SREO:
Property Info
Percent Owned: This setting is available via the "Manage Collaborators" option on the Properties page. Just click the gear icon at the far right of the Portfolio to update the ownership percentage for each partner.
Type: This setting carries over from the Property setup process and can be edited via the Property Details page. Click the small gear icon near the photos and then select "Edit Property Details" to change the Property Type.
Number of Units: Units are managed from the Leases & Tenants page. To add or delete a unit, use the gear icon menu in the upper right corner of each Property card.
Acquisition
Acquisition Date: This field is available via your Properties page. Just click the relevant Acquisition Price to edit all details associated with each acquisition.
Acquisition Price: This field is available via your Properties page. Just click the relevant Acquisition Price to edit all details associated with each acquisition.
Current Financing
Note that if you have multiple loans on a single Property, the Lender, Rate, and Maturity details shown in the SREO are for the largest loan only, while the Loan Balance and LTV include all loans.
Lender: This field is available via your Properties page. Just click the relevant Loan Balance and then click the small "edit" icon on the loan card to update mortgage details.
Rate: This field is available via your Properties page. Just click the relevant Loan Balance and then click the small "edit" icon on the loan card to update mortgage details.
Maturity: This field is available via your Properties page. Just click the relevant Loan Balance and then click the small "edit" icon on the loan card to update mortgage details.
Market Value: Your valuation can also be accessed via your Properties page. Just click the appropriate figure under "Market Value" to edit or change your valuation method for each Property.
Loan Balance: This field is available via your Properties page. Just click the relevant Loan Balance and then click the small "edit" icon on the loan card to update mortgage details. Connect your Stessa account directly to your lender to avoid manually updating your loan balances each month.
LTV: Your loan-to-value ratio is calculated automatically based on your Market Value and Loan Balance figures.
Monthly Pro Forma
The Pro Forma is available for editing on the property-specific dashboard under the "Monthly Expenses" card.
Income: This is the sum of all scheduled monthly rents (and other income) for each Property. These inputs are managed via the rent roll on your Leases & Tenants page. Note that the figure reported on your SREO is not influenced by actual income logged on your Transactions page.
Mortgage: This is the sum of all scheduled monthly mortgage payments for each Property. You can edit these payment amounts by clicking on the relevant Mortgage Balance via your Property Dashboard, then click the small "three dots" action icon on the Monthly Expenses card and then "Edit Mortgage" to update the monthly payment amount. Note that the figure reported on your SREO is not influenced by actual mortgage payments logged on your Transactions page.
Property Taxes: This figure pulls from the "Pro Forma" section of your Property Dashboard page. You can access this page via the Property Dashboard under the Monthly Expenses card, then click the small "three dots" action icon on the Monthly Expenses card and then "Add Property Taxes" to update the tax amount. Note that the figure reported on your SREO is not influenced by actual property tax payments logged on your Transactions page. If you see the word "Included" instead of a number, that means your monthly Property Tax amount is included in the monthly Mortgage amount.
Once the "Edit Property Taxes" flyout is open you can click into the field to edit.
Insurance: This figure pulls from the "Pro Forma" section of your Property Details page. You can access this page via the Property Dashboard. You can access this page via the Property Dashboard under the Monthly Expenses card, then click the small "three dots" action icon on the Monthly Expenses card and then "Edit Insurance" to update the amount. Note that the figure reported on your SREO is not influenced by actual insurance payments logged on your Transactions page. If you see the word "Included" instead of a number, that means your monthly Property Tax amount is included in the monthly Mortgage amount.
Other Expenses: This figure is automatically calculated from the "Pro Forma" section of your Property Dashboard page. The figure includes all projected expenses other than Property Taxes, Insurance, and Mortgage Payments. You can edit the Pro Forma amounts via your Property Dashboard, then click the small "three dots" action icon on the Monthly Expenses card. Note that the figure reported on your SREO is not influenced by actual expenses logged on your Transactions page.
Cash Flow: This number is automatically calculated by subtracting "Mortgage," "Property Taxes," "Insurance," and "Other Expenses" from the "Income" figure. You cannot edit this figure directly. It can only be updated by making edits to the various inputs discussed above.
How to Use the SREO Report Effectively
The SREO is a popular report among lenders and potential equity partners because it provides an easy-to-understand snapshot of your entire holdings. The Stessa version is intended as a cheat sheet to use when filling out a lender's preferred SREO form. It should save you plenty of time when applying for a new acquisition loan or a refinance. It may also prove useful in other scenarios in which you want to bring someone up to speed quickly on the current status of your portfolio.
By combining current occupancy and valuation data with projected cash flow performance, the SREO reveals a great deal about your risk profile as a potential borrower or investment partner. With that in mind, you'll want to make sure your SREO is highly accurate and only accessible by people you trust.
Need Help with Your SREO?
If you're having trouble with your SREO or something doesn't look right and you're unable to fix it, open a support conversation via the blue circle at lower right. We'll take a look and get back to you.