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Track Purchases, Sales, and Refinances

Accurately log and report on new acquisitions, mortgage and loan refinances, and property sales.

Updated over a week ago

Accurately log new acquisitions, refinances, and property sales in Stessa to track your full investment lifecycle and generate better performance reports. Once everything’s in place, you can even calculate IRR in Excel.

Just be sure to check with your CPA before expensing the champagne!

Set Up Your Acquisition Details

To track a new property purchase, first create the new property in your Stessa account. Then follow the steps below:

Step 1: Enter the Purchase Price

  • Open the property details by clicking the property from the Properties page.

  • Under Acquisition details, click into the "Price" field.

  • Fill in the actual contract purchase price only (exclude closing costs).

  • Save the details.

Step 2: Record the Transaction

  • Go to your Transactions page and click “+ Add”.

  • Enter the same contract purchase price.

  • Set the category to Capital Expenses > New Acquisitions.

  • Use the Name field to label the property (e.g., *** 123 Main St Acquisition ***).

  • Set the Date Placed in Service and Useful Life (typically 27.5 years).

This ensures:

  • Accurate tracking on your Dashboard and reports.

  • Proper visibility in Net Cash Flow and tax summaries.


Track Closing Costs Separately

Log closing costs as individual transactions using:

  • Capital Expenses > Closing Costs

  • Capital Expenses > Loan Costs

This helps you reconcile settlement statements and supports better tax categorization. Some costs may be capitalized; others might be deductible. Always check with your CPA.


Track Mortgages & Loans

Step 1: Input Mortgage Details:

  • From the Properties page, click on the Property and select Financials & Assets

  • Click Add on the Mortgage card

  • Connect the mortgage account or add the details manually. When adding manually, be sure to include the original loan amount and the current principal balance.

Step 2: Record the Funding

  • Go to your Transactions page and click “+ Add”.

  • Record the original funding as a Money In transaction.

  • Set the category to Mortgages & Loans > Proceeds & Payoffs.

  • Label the transaction with the lender’s name or a unique tag.


Track Refinances

Refinances typically involve:

  • Paying off the old loan

  • Funding a new loan

  • Incurring new loan costs

Steps to Record a Refinance:

  1. Add a NEW mortgage in the Financials & Assets section for the property.

  2. Delete the old mortgage entry once it's been paid off.

  3. On the Transactions page:

    • Log the payoff as a Money Out transaction
      → Use Mortgages & Loans > Proceeds & Payoffs

    • Log the new loan as a Money In transaction
      → Same category

    • Add any new loan costs separately under Capital Expenses > Loan Costs

These transactions will appear in your Net Cash Flow report under Purchase, Sale, & Refinance.


Extra Credit: Run IRR in Excel

Once your purchase and refinance transactions are in place:

  1. Run a Net Cash Flow report using the Custom date range to cover your full hold period.

  2. Export the data.

  3. Use Excel’s XIRR function on your monthly Net Cash Flow to calculate your internal rate of return.

Use XIRR, not IRR, because you’re working with monthly (or irregular) time intervals.

Questions?

Please direct all accounting questions to your CPA!

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