Updated over 2 years ago on . Most recent reply
Type of banking accounts & credit cards for managing first property and beyond
Hi All,
I am looking to buy my first property as a short term rental townhome in South Bend. I am an out of state investor from Northern VA so I plan on using a property management company that pays me monthly after deducting expenses.
My main question is with regards to managing money for your first rental. Is it recommended to open a new bank account & obtain a business credit card/separate credit card for your rental business? Do I need to setup an LLC to obtain these? Since I will be using a property manager for this first rental, I imagine most of my expenses will be utilities & occasional supplies. I'm leaning against setting up an LLC at this moment as this is only my first rental (that's a topic I'll explore later!).
Additionally, after this investment I would like to expand and possibly get into the long term investment market as well. My assumption is that having the separate banking infrastructure could be good as I expand my portfolio.