I'm currently in the process of closing my first deal. I'm going to be house hacking a 3flat, and am wondering if using the PNC Virtual Wallet to manage the finances is a good idea. Has anybody used this in the past?
Makes sense to me since they have a checking, reserve, and saving account. I would keep the security deposits in the savings account, place some reserve capital in the reserve account, and accept rent and pay expenses through the checking account. However I would like to hear thoughts and opinions.
Make sure you're versed on the laws in your state. Some require the security deposits to be held in separate, interest bearing accounts. Others allow you to pool all the money together.
Just make sure you know what your state requires.
Good advice from Kon above. Also keep in mind that some states (such as the great state of Maryland) require that you pay interest on the security deposit when it is returned... Failing to do so will greatly increase you liability if a lawyer gets involved and any dispute goes to court.
congratulations on closing on a house for a house hack! Im looking to doing one myself.
As long as it keeps the business expenses separate from your personal ones you should be fine and your CPA will appreciate it