She also adds $6,000 to the debit equation and not much income.

He also has 40k debit due to college loan. 

My accountant expenses 1/3 of cost on the income statement each month and puts the remaining balance on the balance sheet as a pre-paid expense.

Typically it's 25% down conventional with about $11k in cloisng costs/pre-paids plus the $70k down and this eats into a lot of my capitol. 

What if they want to pre- paid a big chunk during the 5 yrs term?

That did include ins and tax prepaids and recordng fees, closing fees that they do not control but still....Its not worth it to me to pay 10k on a 80k, especially with as little as I was going to make on the deal. 

You would do that entry.Say for example the property is worth $500K and your original note borrow is $300K, you personally paid down $100K and have $200K remaining on the Note.Dr = Debit.

A lot of times that dollar is going back into your pocket via a retirement account or as prepaid supplies, etc. but it's still unavailable to you for a period of time. 

At $89k ask, there are $5,500 in closing costs ($1,500 of that is tax prorations) and then $2,100 in prepaids (insurance/taxes).

So you open up a new bank account in CO, and give someone you know in Colorodo ATM authorization to use your debit card and put a prepaid amount on there for them to buy groceries each month as a tip for doing you the service.