Should I open up another bank account?

[Zach Steinberg]

Hello!

I plan to buy a duplex soon to begin my real estate journey. I understand that I should have a separate bank account from my personal checking/savings, but based on my research, this first deal won't necessarily provide cashflow with me living in one of the units (it will when I move out). If I were to open up a separate real estate bank account, I would then have to add funds consistently from my W-9 job - which in my opinion begins to blur these two accounts together anyways.

Should I still open up a separate account for this first house hack, or wait until I buy the 2nd property, which would provide consistent cash flow that will go directly into that account? How have others stayed organized with bookeeping when they are starting out?

Thank you!!!

[Noah Loveless]

Hi Zach,

Getting start the right way is a smart move on your part. If you were to open another bank account specifically for the rental property, it would be in your personal name unless you open an LLC and form a business account. When companies or properties are not self sustaining, you would initiate an "owner contribution" to cover any expense the business/rental property could not cover.

Good luck,

Noah