Separate checking account for each rental?

Separate checking account for each rental?

Real Estate Investor · Phoenix, AZ · Member since 2011 · 33 posts · 9 votes

I am closing on my second rental prop next month and want to use an LLC for asset protection. In order to receive rents and deposits I'll need a business checking account.

From what I've learned each property should be a separate LLC and checking account. If I acquire 10+ properties, do I need a checking account for each one? What do people do when they have 50+ properties??

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Homeowner · Burleson, TX · Member since 2008 · 756 posts · 376 votes
14y

I tried separate accounts for each when I started, huge headache. I have one biz account. I do have separate P/L spreadsheets for each property.

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  • Flipper/Rehabber · Anaheim, CA · Member since 2010 · 188 posts · 118 votes
    14y

    Bienes, you are absolutely right. There is no "200K-250K rule". What matters is how much you individually are willing to risk. Everybody will weight this differently. From an asset protection point of view it would be ideal to have each property in it's own LLC. Of course that also adds cost and administrative burden. It's up to you what balance you feel comfortable with.

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