How to Organize and Track Expenses

Question

Hello!

We just purchased our first BRRRR and are needing suggestions on how to best track all of our expenses during the rehab. We’ve been discussing getting a separate credit card to track all materials and subcontractor work. Also, since we’ll be living on the property while fixing it up, I also want to track our mortgage, taxes, utilities, etc. I’m envisioning a spreadsheet to include everything mentioned above, but it feels like there should be a better way. For those of you who have found a smooth process, what do you recommend?

Peter Mckernan · Answer

I am doing a BRRRR right now and I am just using a spreadsheet on excel, but you really can use anything. I have the excel document for my cost Seg on the property and for me paying my vendors. Then I have quickbooks that is linked to those credit cards and bank account for the property.

Aaron Zimmerman · Answer

I would recommend a separate credit card and bank account as it makes bookkeeping easier. If you'd like I have a spreadsheet specifically designed for house hackers that will help report on your taxes. Biggest thing is understanding rental (deductible) and personal (mostly non deductible) percentages.

Ricardo R. · Answer

Hey Paloma,

Congrats on the first BRRRR—that first project always feels a little like controlled chaos, so getting your tracking system right now will save you big headaches later.

Here’s what’s worked well for us when we lived on-site during rehabs:

1. Separate Credit Card = Yes

• 100% get a separate credit card or bank account just for the property.
• Every material run, contractor payment, permit fee—goes on that card.
• End of the year? One statement = all rehab expenses in one place.

100% get a separate credit card or bank account just for the property.

Every material run, contractor payment, permit fee—goes on that card.

End of the year? One statement = all rehab expenses in one place.

2. Simple Spreadsheet + Receipts

• We use a Google Sheet with these columns: Date Vendor / Contractor Expense Category (Materials, Labor, Utilities, etc.) Paid By (Card, Check, Cash) Amount Notes (what project it was for)
• Date
• Vendor / Contractor
• Expense Category (Materials, Labor, Utilities, etc.)
• Paid By (Card, Check, Cash)
• Amount
• Notes (what project it was for)
• Snap a pic of receipts with your phone → dump them in a Google Drive folder with the same name as the property.

We use a Google Sheet with these columns:

• Date
• Vendor / Contractor
• Expense Category (Materials, Labor, Utilities, etc.)
• Paid By (Card, Check, Cash)
• Amount
• Notes (what project it was for)

Date

Vendor / Contractor

Expense Category (Materials, Labor, Utilities, etc.)

Paid By (Card, Check, Cash)

Amount

Notes (what project it was for)

Snap a pic of receipts with your phone → dump them in a Google Drive folder with the same name as the property.

3. For Mortgage, Taxes, Utilities While Living There

• Track them in the same sheet under a “Carrying Costs” tab.
• Later, your CPA will decide what portion is deductible or added to your basis, so keep it all neat now.

Track them in the same sheet under a “Carrying Costs” tab.

Later, your CPA will decide what portion is deductible or added to your basis, so keep it all neat now.

4. Software If You Want to Level Up

• Stessa: Free, landlord-friendly, great for tracking expenses + mileage + docs.
• QuickBooks Self-Employed: If you plan to scale, it’s worth learning early.

Stessa: Free, landlord-friendly, great for tracking expenses + mileage + docs.

QuickBooks Self-Employed: If you plan to scale, it’s worth learning early.

For one BRRRR, though, a credit card + spreadsheet usually does the trick.

If It Were My First BRRRR

• Separate credit card today.
• One Google Sheet with everything in it.
• Scan receipts so you’re not drowning in paper later.

Separate credit card today.

One Google Sheet with everything in it.

Scan receipts so you’re not drowning in paper later.

It doesn’t have to be fancy—you just want clean records when tax time hits or when you go for the cash-out refi. This is the fun part! lol... I hope this helps you, I sent you a DM on BP and hope you can help us as well.

How to Organize and Track Expenses

How to Organize and Track Expenses

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