How to structure bank accounts

[Rick Via]

I'm a new investor in Fort Worth, TX. I just bought my first SFH and am about to buy a second. I'm wondering which is the best way to structure the bank accounts. These first properties are in my name and not an LLC or other entity. I've started out with a checking and savings for each property. I've heard that in Texas, the tenant security deposits have to be in a separate account. Does that mean there has to be another account just to keep the security deposit in? I've heard some investors say they have an account for taxes only. Which account do you keep money set aside for cap ex, vacancies, expenses, etc.? I've heard if your properties are in LLC's you should keep them separate. If you kept it all separate, it seems you would have to have multiple accounts for each property. could someone shed some light on the best way to do this.

[Todd Plambeck]

I am not an accountant, nor do I play on on TV but I do pay for one.  Ideally, you would have three physical bank accounts:  a cash account which holds the bulk of your money, an operating account which your checks are written from and bills are paid, and a deposit accounting to keep tenants deposits separate from your money.  All the other "accounts" you mention that you are accruing for, cap ex, vacancy, taxes, etc., are accounts set up in your accounting system.