The way you account for it is you put the money in a savings accountDebit CashCredit Capital Expenditure Reserveand/orDebit CashCredit Vacancy ReserveThere is no expense and there is no income so from a tax perspective, it makes no difference until you actual spend the money

Would love to gain additional perspective on my first purchase, closing this up coming week on a 2 family property in upstate NY.

@Guy Gimenez Thanks for the response Guy, just wondering from a "costs" perspective. 

Rick - from a back-end perspective, they also handle calendar scheduling and subcontractor notification.

This is probably because the ROI on her 3 months of advertising is more valuable to her than the 30 dollars more a month.It all depends on what you can do with 1400 dollars more in your pocket today versus 30 dollars less a month in income/expense from a cash flow perspective.From a balance sheet perspective the higher rate of 4.75% makes your equity pay down of your 30 year loan slower (less amortization).What are you thoughts?

@Wayne Brooks   I understand your perspective. 

He worded it as such: mud is causing a shift in the pipes, which caused a separation and line break.  

To model your expectations on those kinds of results now that the market has shifted (as it has, in almost all areas of the country) is setting yourself up for disappointment.

Just my perspective.

One issue on the second property was problematic, and we couldn't realistically address it before closing (a small soft spot in one floor, nothing structural just a little bubble under the faux-hardwood flooring where the floor had shifted a bit over the years).