The debit column will be for the balance of the previous mortgage and any other interest or closing costs to do the portfolio loan.

We do however allow tenants to pay by ACH or credit/debit card. 

I recently discovered that the tenants were getting paid on a prepaid debit card, taking the cash off and putting that money in my account.

My favorite is an account where I debit the money directly out of their accounts. 

Some insurance companies are just handing out pre-paid cards just to get people started.   

But it ended really well for both us, because I had a similar property less than 5 minutes away that we were just finishing rehabbing so I had them follow me over to it after that showing.Needless to say they didn't beat around the bush for getting the app filled out and paid for.Others have been a little let down, but I typically collect the application from them on the spot anyways and tell them I'll call them to get a debit/credit card to process their application if the other falls through..

I think in the '80s we didn't even have debit cards, just cash.I was making about $500 a week, so I did the Bank round-robin thing (see above), deposited a thousand bucks in a CD, got $1000 loan, paid it off in 6 months, then applied for Visa or MasterCard through the bank unsecured.But to get back to bad credit and how to make money in real estate.If you go to buy your commercial banks you're going to need a credit rating with a good FICO.And you are going to need 20% down if it's an investment property or 3% down through FHA programs up to four units.That said, how can you make money with BAD credit?

strictly in an accounting sense you'd debit a current asset/ cash account and credit either a short or long term liability account depending on the length of your leases.

If you're starting from scratch I recommend getting a pre paid credit card through like a credit union.

Consider the past "lost" late fees your tuition in the school of hard knocks.This is also a great opportunity to use a debiting service to collect rent.