I already have 1 payment from another tenant stuck in limbo, and they used s prepaid credit card so there is nothing I can do.

In short, I would consider doing this deal unless I had a better use for the $49,000 you will be investing.Closing costs for the purchaser are usually minimal (pre-paid taxes, title insurance, etc). 

Oh good - I was hoping you weren't going to have cross year issues.You can take care of this by doing a Journal Entry.You'll Debit the asset for the sum total of all the expenses and Credit each expense category.  

Hello Bigger Pockets community, I need some advice on how to consolidate credit card debt and what are some of the best options available. I am going to be honest, and say I do not have a clue about anything on this t...

Rental income credit, expenses debit, and the final line on the JE would be the addition to or subtraction from your property management reserve account. 

This is the beginning level of accounting, debits, credits, assets, liabilities and capital accounts.

The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value)."

My next move is to either use the debit acct for house repairs and expenses or even get a credit card for the property.My tax advisor said that I need to show expenses coming from the rental income account.

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AllIf someone could explain, the prepaid reserves, why the difference in loan amount and purchase price, how to read those numbers.