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
-HUD statement
-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:
-bathroom/kitchen remodels
-new appliances,
-new roof
-additions
-landscaping
-shed
-new windows
-blinds
-new HVAC
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.
posted by 2million at
7/14/2006 07:52:00 AM
3 Comments:
I actually have 2 books for each property. My attorney always prepares one for me about 60 days after closing, I receive it. Her book contains all the closing documents and receipts and it is beautifully sectioned.
I being of the anal sort, also create books for the day to day major improvements that I make, leases, and all other pertinent info. So in the end, I have two books on each property. Mine, of course has to be upsized after i have a property for a decent amount of time.
I think you will love this decision. I can't tell you how many times I refer back to these books.
By
Denise Mall, at 9:06 AM
Great idea! I need a new way to organize things, as my folder is overflowing from receipts and invoices from my rental...
-Grant
TheCornerOfficeBlog.com
By
Anonymous, at 1:14 PM
goingdownsouth,
Not sure what your looking for - if you are completely unfamaliar with the Raleigh market I can tell you this, until recently (over last year), the overall market hadn't really been seeing a significant increase in prices over the last several years - maybe maybe 10%-15% in the last 3-4 yrs (depending on area) in my opinion. Things seemed to be starting to catch up, but I don't know if thats still true.
Personally, if I were buying more real estate at the moment in the Raleigh/Cary area, I wouldn't be too worried of a steep decline in housing prices, the market seems very healthy.
By
2million, at 10:13 AM
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