Keeping track of rental property bought with refinanced cash
Need some advice.
We had about 100K left on our primary home mortgage but had a great opportunity to buy a 4 unit multifamily.
Competitive market so we needed to buy using cash to beat the competition in our area so we refinanced our primary house to pull out about 600K in equity.
Now, we have an asset worth 600K and no mortgage on the asset.
How do you treat this when tracking finances?
Given that there is no mortgage on the 4plex, it looks like its all profit and its got pure cashflow.
I think for tax purposes, the mortgage interest is associated with our primary home.
However, for financial analysis purposes, should we just assume there is 600K in liabilities @ 4.6% when making our books? Do you create a seperate QuickBooks/Excel/GoogleSheets/Stessa for this?
Interested to see how others would treat this.
Thanks in advance