But I was counting on that cashflow for other things.So you're taking out a loan to buy something and using the proceeds to buy other things for yourself rather than paying the loan back...This sounds like a terrible deal for whoever is making the loan to you.Since you've already earmarked your future income for future purchases, you should probably just determine how much you are willing to fork over each month or year.

They are just earmarked for those future expenses.Hope this super simplistic way of thinking through the extra payments into escrow helps.

What is the best way to track this and "earmark" those funds for that category in the Quickbooks program?

As developers earmark partially occupied office buildings - the Leader Building, theStandard Building and the Halle Building, for example - for residential projects, the size of downtown's older office market will continue to decline.

Plus now I get to earmark spending money and know exactly what I have left for the fun and the necessary things.It's called "You Need A Budget"  YNAB.  

Estimated monthly mortage/insurance/tax + loan payment would hover around $3500, not including utilities.Since we have lived in 3 ADU's in the past as tenants, we've accurately estimated that our proposed 1 bed 1 bath with fenced-off yard and pergola, ADU could rent for $1700/mo easily, with the tenant paying their own utilities.Our budget is no more than $475K, including money earmarked to repair main house (because honestly, we won't be getting anything pretty in San Fernando Valley at this price range) and construction loan for the ADU. 

There are several options for the banking within this setup: (1) operational LLC can end up being what receives and spends money for the setup per the operating agreements, (2) operation LLC does most activities, but you can also open accounts for each [child] series for specific funds (this can turn into a nightmare, so it isn’t recommended,) or (3) the operational LLC conducts activities and then house all individual expenses under the [parent] LLC bank account with correct earmarking (through Quickbooks, etc.)

Also, double a triple check that the 24k you have earmarked for the rehab is a conservative number because unexpected repairs will come up as I am sure you know.At 60k this deal is a pass to me.

I'd use your personal funds unless you have that earmarked for something else or it is your emergency funds which in that case you obviously shouldn't touch it.Money is a game of interest and having the funds sitting in a checking account you are losing value to inflation.If you take the money from your HELOC now you are paying additional interest you don't need to pay.There is no reason to keep a lot of money in a bank account unless you are planning on investing it in the very short term.

The logic is the following: As commodity prices rise, money earmarked for other items goes towards meeting the higher commodity price and consumers are essentially forced to re-allocate their spending budget.