Is there a place in the dashboard to add the renovation costs to the cost of the acquisition? I do BRRRR and all of this renovation cost should be part of acquisition cost as well. Also, is there a place to add the original loan amount? Thank you!
I am not providing legal or financial advice, but from a bookkeeping standpoint, I would separate this into two questions: tracking the renovation/acquisition costs and tracking the loan.
For the dashboard, the only area I am aware of that gets close to what you are describing is Projects, but I believe that requires a Stessa Pro subscription.
If you are not using Projects, then I would categorize the purchase and rehab costs under Capital Expenses, rather than ordinary repairs or operating expenses.
For example, the acquisition cost would generally go under a capital expense category for the property purchase/acquisition. The renovation or remodeling costs that improve the property would generally also be capitalized, often under remodeling, improvements, or similar capital expense categories.
The loan documentation is under the property section, then financials and assets, and then there’s a tile that says mortgage. You can add it manually or connect it to the loan institution itself if it has a connection.
I would also confirm the treatment with your CPA, especially for BRRRR properties, because the timing and classification of acquisition costs, rehab costs, repairs, improvements, and depreciation can affect your tax reporting.
Hope that helps.
-Tom
www.realcentsorganized .com
