Financial/Money management for duplex

2 Replies

Hey everyone! Just started out and bought my second property, I’m looking for some information in regards to money management. I bought and renovated 2 properties (duplexes) and turned them into excellent rentals. Now I’m just trying to figure out how to manage my money properly. Should I keep rent money in new separate bank account or just keep track or what I get? Should I create a ‘business’ account? How much money should I be putting aside and for what? Do I keep letting the money in rental account increase over the years and use that for repairs/upgrades? Is there a excel spreadsheet template that I should be using to keep track of expenses on a month to month basis? Is there apps for my phone I should be using that I just don’t know about?

@Nick Cote
The way I did it was: set up a separate checking account which rent flows into and all expenses flow out of. Start out with balance of $10k for reserves. Let the cash flow pile up for awhile. When you buy the next property, skim off the top (down to $10k) to help pay for inspection, appraisals, closing costs. Repeat.

I do have a spreadsheet (nothing fancy) that I export my transactions to monthly so I can track how each property is doing.

What would be the advantages of having the income in a separate account as oppose to letting it go into my regular everyday account? Is it just easier for tax purposes or is there other advantages to doing that?

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