Question on expense accounting

[Carlos Santiago]

I'm working a rehab. I have a rehab loan -- so the mortgage is for the house + approx. $24K in rehab money.

For my accounting - how do I account for repairs being paid for? I'm writing the check and getting the receipt from "my" money -- but really its loan money. I don't think I'm making this clear...

I use Quicken Rental Property for my software. And, if I put in that I spent $4K on a new HVAC -- then at the end of the year its going to show that $4K expense. But really, I've already paid that expense becuase that $4K is coming out of the rehab money. So, does that mean I'm accounting for the expense twice? And not to mention, I'll need to depreciate that HVAC (capital expense).

Does anyone know what I'm talking about? Let me know if I need to write this up better. I'm very confused... :oops: