Managing Rental Income

[Gabriel Novotny]

Just curious as to how other folks are managing the rental income once its deposited into your bank account.  For instance, are you transferring the "real cash flow" to a your everyday checking account and leaving all the reserves in another account?   Are you using a high yield account for the reserves?  Or just leaving the entire rental income in one account and saving the real cash flow for another investment?  Appreciate it and have a good one! 

[Brad Hammond]

Hi @Gabriel Novotny, everyone's process is going to be different but I like to keep things simple.  I have everyone's security deposit comingled in a separate (security deposit only) account and each property with their own checking account.  I don't skim off any cashflow for myself but I guess it would be easy enough to do an automatic transfer into your personal checking every month.  I keep all the funds in that one account and pay bills from that.  If there are repairs and cap-ex, that all comes from that same account.  

You don't need to spend money on a business account, just open another personal accout with your current bank.  Hope that helps.