1st property on the horizon!
Good evening BP members,
I am a week away from my closing date on my first property! Broke free of the "analysis paralysis" syndrome!! I have a rookie question in terms of management. After ensuring I had done all my underwriting numbers and locked in my final calculations, I know am not sure how to handle some of the incoming funds.
So, I have set my percentages for my vacancy, capEx and Maintenace each month which comes to approximately $236 a month, this might sound like a silly question, but how should I "store" that money? Do I keep funds in the business banking account I created for my real estate transactions? Or do I put it into something that will earn me intrest , like a checking account that is getting 5% APR returns right now.
I know that the purpose of these monthly deposit I get from my rental income is to be stored for the reasons they are labeled for. I assume I would just put it into my business checking account and let it remain there until one day it's needed?
The answer may be obvious, but I know it doesn't hurt to ask and get some feedback from investors who've been through this.
Marc