Updated over 6 years ago on . Most recent reply
Starting with REI, Accounting question
Hi,
Just started in my real estate investing journey, bought my first rental property and have a couple of accounting questions? I'm not applying for an LLC yet but instead am getting an umbrella policy to cover myself.
1. What kind of bank accounts should I look at to keep my rentals operating like a business and not mixing it with my personal finances?
2. If I have a certain amount of capital in my savings which I plan to use for real estate investing, should I move all that to a different account even if I will only use half (Closing cost and rehab) on this new rental?
3. Once I have new account set up, would you recommend I add any additional capital I plan to invest not counting clashflow from rental into same account?
Any advise would be greatly appreciated. I’m pretty good with numbers but would like consider using a software to help me keep everything organized. Is there any you would recommend that aren’t overly pricey?