Newbie Alert: How to Setup Bank as Landlord?

2 Replies

Hello,

Coming pretty close to purchasing my first buy and hold investment property.  Had a few questions I started considering to make this transition go smoothly:

How should I make purchases in my new small business?  Open up a new bank account separate from my personal? Can it just be a regular checking/savings account or is there some type of small business account that would work better?

I guess I could continue to use my personal car and just keep track of all receipts?  That doesn't seem like the best way though.

Do you guys use separate accounts for each property/unit?  Or is that overcomplicating things?

Looking for any advice on how you guys have setup your small business.

Thanks!

Tim

You should definitely separate your personal account from your real estate.It makes easier for when tax time comes around. You also want to keep your security deposits in a separate account as well. Double check your states law.

I'm new to the game, but I've heard from multiple sources to open a business checking and business savings account.  I would use your cash flow from your rental income to put in the savings and put the security deposits in checking.  Like I said, I'm new to the game, but just my two cents :)

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