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.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing