Bank Recommendations for Checking + Security Deposits

1 Reply

Hi,

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.

  1. Any recommendations for banks that offer multiple checking and multiple savings accounts with little to no fees?
  2. 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.

Thank you,

Donovan

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. 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

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.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.