I paid off the mortgage on a rental property. However I just did a cash out refi with that rental property to build an ADU. Does the new loan (mortgage) get listed as an additional property (ADU) or on the primary rental property?
I did read your other cash out refi answers but did not read anything regarding an ADU.
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@aprilking1 Nice! It sounds like you still have a single property, but now it has two units instead of one. Loans are associated with properties, not units, so you would just assign the new mortgage to the one property. Make sense?
Yes it does, I was wondering about the accounting.
For example, if unit one paid rent but the other unit did not then how would that be distinguished in the net income and cash flow etc? If the new ADU cost to build is $250k but the front home was purchased for $209k do I leave $209k in the stessa system or change the property “cost to purchase” to $250k? Or would the cost of purchase be 209+250=459k?
I realize it would be more of a “multi unit” but I just wasn’t sure how to edit the current property in the system.
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