Holding costs - Posted by Bert G

Posted by Monique on January 20, 2001 at 18:32:00:


Good to see you posting again!

I’d saying that your holding costs should be the P&I (or PITI, if applicable). I think you want to understand the total out-of-pocket funds required to feed your property until it’s sold. It’s kind of a view into cash flow for the property.

From a Profit & Loss standpoint, your principal payments will simply show back up in your Profit column once you are paid off.

My $0.02

Holding costs - Posted by Bert G

Posted by Bert G on January 20, 2001 at 14:06:40:

Think I mislaid a brain cell somewhere, I’m drawing a blank on this.

My DIY rehab took lots longer than expected between closing and occupancy–like a few months longer–during which of course I was paying utilities and mortgage payments.

In figuring up my holding costs, do I figure both P&I or just interest?

They’re both coming out of my pocket, but the principal essentialy went into my pocket in the first place.


Re: Holding costs - Posted by Bud Branstetter

Posted by Bud Branstetter on January 21, 2001 at 11:49:28:

Any expense you did to make income is deductable. Major improvements may have to be capitalized then depreciated. Yes, utilities are a holding cost that can be expensed. What difference does it make if you classify them as holding cost or other expense.