How do I enter the appreciation of value after a refi & cash out?

[Mike Carstens]

We are finally getting our business computerized and are running into a glitch.  

Scenario - 

Purchase a building for $70,000

Initial improvements $25,000

New value $145,000

Refinance at 75% of $145,000 = $108,750 mortgage

The problem that I am running into is that I am showing an long term asset value of $70,000 + $25,000 = $95,000 but an offsetting long term liability value of $108,750.  

Each time that I do this it makes me look more and more risky.  The properties also appreciate normally over time, so this property 10 years from now will show 10 years of depreciation on it lowering the value even more when in reality the value will most likely have appreciated greatly.

I understand that the book value of the property is already entered and is standard, but it is failing miserably to give a true and accurate snapshot of the company's health.  

How can I incorporate a proper value - say the latest real estate appraisal- into the balance sheet for each property?

If this has already been covered, please forgive me and send me to the right area.

Thank you!

Mike