Starting Out Setup... Bank Accounts, Credit Cards, Etc.
Hello, BP Community!
I am close to acquiring my first two SFRs in Alabama, and will be adding one in Indy shortly for a total of three.
While this is very exciting indeed, I am now getting overwhelmed with the concept of how to structure them separately so as to keep my finances straight.
At this time, I am not going LLC route, but rather the hefty umbrella policy route.
(I will probably transition them to LLCs in the Future).
I want to lay the foundation for CLEAN and EASY TO TRACK Finances... as well as PROTECT myself.
My questions are...
Assuming I will have three properties... How in the WORLD should I set this up for BEST ACCOUNTING and TRACKING purposes?
- Do you recommend a DIFFERENT BUSINESS Checking Account for each Property?
- Does Each Property need its OWN BUSINESS Credit Card?
- Will my ONE hefty Umbrella Policy keep me safe from Personal Liability for a while?
- If I am going to move these into an LLC later, do I need to avoid paying for expenses for the property from under my own name, on a personal credit card, for example? Is this a major consideration in the beginning now?
Thank you all! I am SO EXCITED to get started, however, a bit overwhelmed now about how to keep it all straight.
Justin