Buying under market & rehab, how to set up property?

Setup & Support
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I am new here… Looking for some help to setup

I bought SF property from a whole saler using hard money. For ex, my purchase price is $98,000. Closing cost $7,000. I spent $21,000 in rehabbing this for 2 months; holding cost $1,500. The LTV on hard money is 75%. Then refinanced into Conv mortgage and moved in a tenant. In the whole process my net out of pocket is $21,000 for the property with ARV of $164,000… which leaves me with cap gain of about 100% (with 75% LTV on Conv, my down payment should be 41,000 where as my out of pocket was 21,000 only)

If I have to set up the whole expenses for the above, how do you do it? what transaction codes do you use?

I tried with a one time Transfer > Owner contribution for my out of pocket… This is not bringing the correct numbers to the dash board.

1 Like
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I am also struggling with how to account for Owner Contribution and Down Payments, especially since I have a partner, so I can’t help you with that.

However, I do just want to point out that your capital gains if you sold the house today at $164K would be $164 minus $98 minus $7 closing minus $1.5 holding minus $21 rehab = $36.5K and then subtract selling costs. Capital gains do not take into consideration your actual cash invested - that would be your return on investment or you can calculate your cash on cash return. (N.B. I’m not an accountant, so be sure to talk to your CPA for advice on this)

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@samuhomes This article will help you record each element properly in Stessa: Track Purchases, Sales, and Refinances