Bank Account Management for Rentals

[Cody M.]

Hello all!

Closing on a quad plex at the start of Nov and just wanted to ask everybody how they are doing their bank accounts/Credit Cards/Asset Protection. This purchase will push me over the 7 doors mark so want to make sure I'm disciplined and organized as I grow. Is everybody keeping each of their properties in separate checking accounts, each property has their own credit card? If thats the case, if I get to 20 properties will that mean 20 separate accounts? Seems kinda hectic.

**Also am located in Kansas City so have had thoughts of jumping to a 'Series LLC'**

My Current setup: 

Rental 1, (ARBNB): Separate Checking Account, Personal Name

Rental 2, (Out of State): Separate Checking Account, Personal Name

Rental 3/4 (LTR): Separate Checking Account together. Both small homes on the same street so put them in their own LLC. They are in a business account.

Rental 5-8: Separate Account, LLC. Business Account?

Currently I use one credit card and dedicate it ONLY for the real estate business. My assistant then categorizes expenditures dedicated to each property in Baseline Software, pretty organized this way. Curious what everybody else is doing and how I can ensure I'm doing things clean and efficiently as I grow. 

Always looking to improve so any advice would be appreciated!

Thanks,

Cody 

[Derek Hand]

I've grouped mine into a holding company and an LLC for each parcel that I am developing (currently 4). Parcel A will have 32 doors, B will have 53 doors, C will have 30 doors and D will have 13 doors. Each LLC will have its own bank account and this way I can scale the business appropriately while keeping everything organized as I scale.