I just recently finalized the purchase of my first two investment properties. Both these properties are long term buy and holds. I just wanted to get a sense from experienced investors out there on how you guys go about organizing your properties and the bank accounts the rent is paid into and the mortgage is taken out of.
I was thinking of opening separate savings accounts for each property so I can clearly evaluate the financial performance of each property specifically. I have been told that this would also be easier for tax purposes.
As I am sure many of you can appreciate there is so much to learn for a new investor like myself and I find myself having to make new decisions every few days. This is the first time I am doing all of this so I am just interested to see how you experienced investors go about this. Do you recommend having one account for all or is it easier to open a separate account for each?
Thanks so much everyone.
My husband and I closed on a 4-unit property on Tuesday. I have set up separate checking and savings for that property. My first property was a condo and have separate checking and savings set up for that one, as well. Only two properties now and trying to keep them separate as you are also thinking.
I have numerous properties. I only have two accounts. One account is a liabilities account for security deposits. The other is an operating account for income and expenses. I use quickbooks for my records.
Its far easier to file in tax season and keep things organized if they are all in separate accounts.
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