My tenant paid six months of rent as a lumpsum amount. I own a business checking account to manage rental income. I do not have any imminent capex or big ticket maintenance items (fingers crossed!)
What would YOU do with this rental income? Bank is offering me a 4.7 APY 7-month CD which is not a lucrative offer but that would be an option. I just don't like the idea of letting this amount sit in the bank and at the same time I don't want to mingle it with personal brokerage account.
I suppose this depends on if you have reserves already for this property. I like to keep between 6-12 months of reserves in the event of a catastrophe. If you do have the reserves or don't need them, I would look at moving it to a business CD or possibly re-investing into another property if it gives you enough for the next down payment. There are so many options, just depends on your goals - do you want more rentals? What about lending it to other investors? If you're self employed, you could add it to a self directed IRA.