How to categorize rehab financed by lender at purchase

I’m trying to setup a new property. I had enough value in this property at close that I was able to finance an additional $15K with my lender to do some necessary rehab.

How should I document that $15K cash in? It really isn’t a “Owner Contribution” – that will affect my CoC. I gave the bank $8K at closing and they gave me back a check for $15K…

I wish every deal were like this, but it sure makes my bookkeeping and calculations more interesting.


@gergknardot Good question. For this scenario, I would recommend logging the $15K loan disbursement as “Money In” to Mortgages & Loans > Mortgage Principal. You can then log your actual rehab expenses as usual under the various Capital Expenses sub-categories. The $8K you paid the lender at closing would be handled separately, probably under Capital Expenses > Loan Costs, but definitely check with a good CPA on all of this since acquisition and loan accounting is somewhat complicated. Does that make sense?

Also, if this loan is not linked directly to Stessa, you’ll also want to adjust your mortgage balance elsewhere in Stessa to reflect the new higher outstanding balance.