How to record construction costs while using personal loan but eventually refinance the property to payoff the loan

all costs to build are part of the items cost, that includes permits and other fees. I would

create a bank account called WIP-building (work in progress)

Make payments from this account in QB (in actuality you have the make the payments yourself)

at least once a month note the balance in this account, it will be negative, make a deposit in that amount and use owner equity investment as the source account for the deposit

When the building is ready for use, create a fixed asset account for the building, and a sub fixed asset account for the accum depreciation-building

get the refinancing set up, then do a journal entry, debit fixed asset building, credit loan liability

pay off the personal loan

Thank you so much.  

Same property.  I forgot to mention that there is an existing home and I am adding a second unit.  And I updated the front home.  Will that be improvements?  And I used my personal funds for that too. Should I create a separate WIP account for those?

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@Rustler wrote:

all costs to build are part of the items cost, that includes permits and other fees. I would

create a bank account called WIP-building (work in progress)

Make payments from this account in QB (in actuality you have the make the payments yourself)

at least once a month note the balance in this account, it will be negative, make a deposit in that amount and use owner equity investment as the source account for the deposit

 

When the building is ready for use, create a fixed asset account for the building, and a sub fixed asset account for the accum depreciation-building

 

get the refinancing set up, then do a journal entry, debit fixed asset building, credit loan liability

 

pay off the personal loan

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I forgot to mention that while I am using the line of credit I put the monies into the checking account for the property and write the checks from there.  Based on what you said I am probably doing it wrong.  How do I fix that or record it to show that I am still owed the monies?