GAAP - Chart of Accounts - Down Payments

[Matt P.]

I'm creating a Charter of Accounts for our new buy & hold business.  I'm obviously not an accountant but I'm trying to follow GAAP practices so my P&L and Balance Sheets look solid for the bankers...

What type of account is the correct choice for the Chart of Accounts "Down Payments?"  To be clear, I mean the down payment money we spend when we purchase a property.

• Asset - NO
• Cash - NO
• Liability - NO
• Capital - ?
• Income - NO
• Expense - ?

Expense Accounts show on P&L.  Capital Accounts show on Balance Sheet.  So my guess was Capital Account.

I have the same question on Rehab expense.  Is that Capital Improvements?

Thanks

Matt