Accounting for Rehab hold back

[Greg Widdicombe]

We normally use current asset accounts to track 'expenses' for our flips - a Construction CIP account, with a sub account for each of purchase, holding, rehab, and selling costs.  We use classes for each property, and items for recording expenses to the appropriate CIP sub account.  On sale, we move the CIP down to COGS for that property.  

We currently have a flip with loan funding both the purchase and construction hold back, and I am trying to find where the hold back fits into the purchase transaction.  Do I move it up to the CIP Rehab sub-account on purchase, then use a JE to move each rehab funding transaction from the sub-account to checking?