I've just put in a backup offer for my first investment property in Oregon. It's a Single Family Residence (SFR) with an Accessory Dwelling Unit (ADU / Grandma Unit) in the back. As much as possible, I'd like to handle the bookkeeping on this as correctly as possible.
My initial research tells me that I'll need:
- A dedicated checking account for this property.
- A savings account to hold the deposit for the house.
- A savings account to hold the deposit for the grandma unit.
I currently use Capital One 360 for my consulting business and like how easy it is to create sub-accounts at no cost. This allows me to tuck away money for taxes, etc. That said, best I can tell, they'll only let me open the one checking account. I don't want to use the same account as I'm concerned about commingling the finances and (eventually) I want to have a clear picture of how each of my properties is doing.
- Any recommendations for banks that offer multiple checking and multiple savings accounts with little to no fees?
- Any suggestions on how to best structure my finances for my first few properties?
I don't expect this property to cash-flow more than a rounding error for the first year or two, thus the emphasis on low/no fees.
I was debating between Schwabb (great rates, ATM benefits) and Ally (all-online, similar to CapitalOne 360), and ended up going with Ally as new savings accounts can be opened without needing to submit a paper application.
I'm initially thinking:
Checking: All payments made for/from property.
Unit A Deposit (Savings)
Unit B Deposit (Savings)
I don't love the thought of eventual revenue from the property just sitting in a low-interest-bearing account, but don't know how to reinvest it without comingling real-estate/personal funds.
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