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Updated over 9 years ago, 06/08/2015
What to include in acquisition costs?
Hello all,
I've purchased several properties in the past 18 to 24 months and I'm starting to really work on doing a better job of organization and calculating exact returns. I've been cautious to make sure I'm purchasing pretty well (I was fortunate enough to buy a duplex for 52,500 with gross rents of 1125 per month, and a SFH for 50,500 that rents for 775), but as I look to expand, its certainly going to be more important to get a stronger handle on determination of cash on cash return per property.
With that being said what do you include in your acquisition costs? What I'm including right now is
-Inspection
-Loan Acquisition costs
-Downpayment
-Initial repairs
-Any other settlement costs or wire transfer fees, etc
For my SFH I purchased a washer, dryer, and refrigerator prior to getting a tenant. Should I include this as an acquisition cost for the purpose of calculating my CoC return, or expense it to something like CapEx? Also, are there other expenses that you would run in to regularly that I'm missing from this list?
Thanks