My House Notebook
A lesson learned from my 1st house conversion to a rental property is to get organized now as I buy new house. I have realized I need to keep everything that affects the cost basis of the property in case I decide to sell it or convert it to a rental property.
I have put together a 3-ring binder for this property that will track all the expenses that could potentially affect the cost basis.
So far I have included:
-house contract (I don't think I need this, but seemed like a good place to put it)
-invoice from the home inspection
-Invoice from the pest inspection
-HVAC inspection invoice
-survey (I found out this can be useful to measure size of landscaping such as driveways, fences, etc)
Anything that I do to the house that may adjust the cost basis will also be added:
These include capital improvements such as:
Basically anything that MAY affect the basis (if I don't know I will add it just in case) will go into this notebook. Then when it comes time to convert or sell the property I have everything together in one spot to make it a less painful process.