I understand your reply of repair versus capital expense so my question must not have been clear…
When I buy a house to resell that will need some repairs, these repairs are a capital expense as the property is not in “service”.
To properly see my cash flow in Investor Books PRO when I do a report, I put these fix up costs as an expense (initially). I do this under “repairs and maintenance”
The fix ups will eventually be transferred and re-characterized as a capital expense at a later date thus in the meantime allowing my cash flow report to provide useful information for me as an investor.
My question is when do I transfer this to the asset?
Thank you Mike,
Hope that is more clearer-er
Great Question Steve! This is probably one of those questions most investors are afraid to ask.
For starters, as an investor and business owner Click to Access Video or Read More