Where do you park your rental income?
Hello BP,
I have a few questions:
First
I recently acquired my first tenant in a house a hack. Today I opened up a new checking account with my bank, and I either need to have direct deposit setup with a minimum of $500 deposited each month (which I can't do because this is rental income), or I need to maintain a $1500 balance at all times to avoid a fee. Is there a better way / account that I should be using for receiving rental income so that my $1500 isn't wasting away not working?
Second
What do you do with your rental income to make it work for you? I was thinking about forwarding it onto my online savings which has a 1.5-2% interest rate, or sending it to my individual broker account and investing it in a mix of VTI / other index funds. To me though when I invest in index funds the goal is long term, and I want to access my rental income within the next year or two to get my next property, I don't want to potentially lose money when I need to pull money out for a deal, and also don't want to pay any captial gains taxes, but the online savings may not be the strongest way I can park my money. Ideas?
Thanks