How do I enter a renovation that also increases the home’s value?
Where to find it: REAL ESTATE
The renovation cost is a cash outflow. Add it in EXPENSES, using one date for a lump sum or the relevant dates for several payments. Add financing in LOANS separately if money will be borrowed; do not enter an account withdrawal as a second renovation expense.
The expense itself does not automatically add the same amount to the property’s value. REAL ESTATE uses the entered property value and growth assumptions. A renovation costing $50,000 does not necessarily increase market value by $50,000.
Once the renovation is complete, update the actual property value.