Initial acquisition and costs

We acquired another property last month. This will be our first property that we will track in Stessa from the very beginning. Couple questions:

Since we do not have our “property bank account” setup yet, we paid for the property and costs out of a personal checking account. For all acquisition costs and initial operating expenses paid from our personal checking, should we record two transactions: 1) record cost/expense and 2) record owner contribution? How does that affect reporting and metrics?

Is it necessary to record a transaction representing the closing? Or is the acquisition covered by updating all of the property information? Maybe a better way to ask - how should all of the costs from the Closing Disclosure (Settlement Statement) be recorded in Stessa?

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@macioceproperties Good questions. So, the “Owner Contribution” and “Owner Distribution” categories are really only intended for owners working with property managers. Otherwise, Stessa is designed to be used as a single entry cash-based tracking system. So you would only want to add transactions for the closing costs. Does that make sense?

The purchase price can simply be entered under “Financial Details.” See Basic Property Details: Add & Edit in the Support Center for more details on how to do this.

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@devin Makes perfect sense, and I thought that was the case. I just wanted to be sure that updating the “Financial Details” covered the acquisition. It seems like the only transactions to record from a closing are the loan costs and closing costs.

For purposes of tracking my investment (cash invested for acquisition and initial working capital) into a property, I’ll need to track that on the side?

Copying something over I wrote in another thread. Am I accurate in what I am reporting? It is not complaint, because I love using Stessa. However, it is an important question because it will dictate what I will need to track outside of Stessa.

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Does this mean that using the “Owner Contribution” category to track personal cash infusions is not advised for those who self-manage?

Like others, I’m interested in being able to calculate CCR, so I added a positive Owner Contribution line item to account for the expenses I covered out of pocket. Will this cause any issues with Stessa reporting and calculations?