Give every project its own place in the books before the first dollar goes out, and record each cost to that project as it happens. The most common problem isn't a missing cost. It's costs from 2 projects mixed together, which makes both projects' numbers wrong.
Set up each project before work starts
A separate bank account or card for each project, or at least a tag. A separate account is the cleanest option. If that isn't practical, every transaction should be tagged to a property in your accounting software. Either way, nothing gets recorded without a property attached to it.
A budget by line item. Demo, framing, roofing, plumbing, electrical, HVAC, drywall, flooring, cabinets, paint, landscaping, permits. Tracking actual costs against the same lines shows where a project is going over while there's still time to adjust.
A W-9 from every contractor before you pay them. Contractors you pay $2,000 or more in a year (the threshold for payments made in 2026, up from $600) generally need a 1099-NEC from you. Collecting the W-9 up front is much easier than chasing it in January.
Track as you go
Record each receipt and invoice to the project and the budget line it belongs to
Record returns and store credits against the same project, so materials you took back don't stay in the cost
Keep personal card and cash purchases to a minimum, and when they happen, record them the same week
If materials are bought for 2 projects in 1 trip, split the receipt between them
Reconcile loan draws
If a lender funds the rehab in draws, each draw should match the work and the costs it covered. Reconciling draws against what was actually spent shows whether you're ahead of or behind the lender's budget, and it means the loan balance in your books matches the lender's statement.
For BRRRR properties
Rehab costs on a property you're keeping as a rental are generally added to the property's cost, not deducted right away, and they're part of what gets depreciated once the property is placed in service. That makes the split between rehab costs and later repairs important. Your CPA decides the final tax treatment, and they need a clean list of rehab costs to do it.
When you refinance, the cash you take out is loan money, not income. It belongs in the books as a new loan paying off the old one, with the closing costs recorded separately.
Where to start
If you have a project running now and the costs are spread across accounts, tell us where things stand. We'll go through it on a short discovery call and you'll know what it would take to get each project's costs in one place.
REVI Bookkeeping works with house flippers and long-term rental landlords anywhere in the US.
