Occasionally you may need to enter negative "costs", like lender or seller credits, rehab work rebates, seller concessions, or other discounts you receive during the closing or rehab processes.
You can also use this to account for any sources of income during the rehab period of flips or BRRRRs. This is helpful, for example, if you're rehabbing only some of the units in a multi-family building, while renting the others.
You can account for credits, rebates or concessions by entering a negative amount on any itemized list on the property's Purchase Worksheet, like the closing costs, rehab costs or operating expenses.
Step 1: Select "Itemize" for the Category in Question
For example, if you need to enter seller concessions, open the Purchase Worksheet, and click Itemize in the Purchase Costs section:
Then turn on the Itemize Purchase Costs toggle:
Step 2: Add an Item With a Negative Amount
Click the Add button at the top right of the list:
Then enter the information about the specific credit, rebate or concession you're receiving, making sure to enter a negative amount:
After clicking the Add button, the new item will be added to the list. It will correctly discount the total for that category and offset the other items: