Checking/Savings Account for Rental Property

[Luke Ostergaard]

I have seen several different opinions on this matter but I wanted to get some up to date recommendations. I am working on acquiring and moving into my first househack (2-4 unit property) sometime within the next 3 months. At that time, I will also rent out my current primary residence (SFH). I am looking for advice on the most efficient way to set up my financial accounts as a new investor.

My plan was to open up a separate checking and savings account to manage income and expenses for the SFH with the following breakdown:
- Checking: income and expenses 
- Savings: to hold security deposit and reserves

Should I also manage the income/expenses of the 2-4 unit property through this new account? Or would it be best to manage the househack through my personal account as I will still be living in one of the units? Thanks in advance for the advice!

[Jim Victor]

Once you go above one rental property you definitely need to break your rentals out into a separate bank account from the bank account you use to manage your life.  It makes things much easier.  How you should break things out most efficiently from there will become more apparent as you build out your portfolio.  I use one bank account and an Excel workbook to manage rentals, but I live in spreadsheets every day, and that might not be comfortable for most people.