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 

[Syed Ahmed]

Congrats on hitting 7 doors, Cody that’s a big step. Separate accounts for every property can get messy fast, so many investors group by LLC or entity and then use software to track property level numbers. That way you keep things clean without juggling 20 bank accounts. Talking with a good CPA/attorney is worth it, especially if you’re considering a Series LLC in KC. Since I also work with a lending company, I see a lot of different setups and what tends to work as people scale. Feel free to connect if you want to bounce around more ideas