House Hacking Business Bank Account

Tampa, Florida
House Hacking
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House Hacking Business Bank Account

Jacob Guttman
Baltimore · Member since 2024 · 22 posts · 3 votes

Hi everyone, I am under contract for a home in South Tampa (SFH 4x2). I will be house hacking and renting by the room. I plan to keep my "business" finances separate from my personal finances. Does anyone have recommendations on free business credit cards? Also reccomendations for business savings/checkings accounts? Websites that automate rent collection? What do people think about Baselane?

Any info helps! Thanks.

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Jeffrey Anderson
Specialist · Tampa Bay, FL · Member since 2023 · 48 posts · 13 votes
7mo

I would run this by your tax professional. My understanding is that renting out any portion of your primary residence is considered personal income, not business. In turn, you shouldn't be putting personal income into a business account. You could certainly open a different personal account to track things, but at the end of the year it all still goes on your 1040, albeit on a different line. 

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  • Jeffrey Anderson
    Specialist · Tampa Bay, FL · Member since 2023 · 48 posts · 13 votes
    7mo

    I would run this by your tax professional. My understanding is that renting out any portion of your primary residence is considered personal income, not business. In turn, you shouldn't be putting personal income into a business account. You could certainly open a different personal account to track things, but at the end of the year it all still goes on your 1040, albeit on a different line. 

    1Reply
  • Michael K GallagherBusiness Member
    Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
    7mo

    @Jacob Guttman Not sure as said here before that this would be business income but would 100% getting a separate account at your current bank for the property just to keep things clean.

    [email protected]614-362-2231
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  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 694 votes
    7mo

    Jacob, that’s exactly how I went from zero to 40 properties, starting with house hacking and treating it like a real business from day one. I lived in the property, rented the extra rooms, kept my expenses tight, tracked everything separately, and used smart leverage to move to the next deal. On the credit side, I’ve liked American Express Business Gold for Home Depot and repair spending because the points per dollar are strong, Discover when they offer 0% for 12 months to float improvements without pressure, and Chase Ink for everyday operating expenses like internet, utilities, and office supplies. Even though room rentals flow through your personal return, running clean accounts and using the right cards builds discipline, keeps records simple, and sets you up to scale instead of staying stuck on property number one.

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  • Victor SoBusiness Member
    Real Estate Agent · Chicago, IL · Member since 2017 · 325 posts · 193 votes
    7mo
    Quote from @Jacob Guttman:

    Hi everyone, I am under contract for a home in South Tampa (SFH 4x2). I will be house hacking and renting by the room. I plan to keep my "business" finances separate from my personal finances. Does anyone have recommendations on free business credit cards? Also reccomendations for business savings/checkings accounts? Websites that automate rent collection? What do people think about Baselane?

    Any info helps! Thanks.


    It’s great that you’re doing this! Keeping everything separate will keep everything clean. For credit cards, I like the ink business cash card because of their promotions and ultimate rewards program. For business checking, I opened up a BMO account cause they had a great promotion going on. The app is a little laggy than the Chase app but other than that, it’s been fine. 

    Victor So Real Estate LLC517 Reviews
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  • Morgan Shupe
    Rental Property Investor · Colorado Springs, CO · Member since 2023 · 11 posts · 4 votes
    7mo
    Quote from @Jacob Guttman:

    Hi everyone, I am under contract for a home in South Tampa (SFH 4x2). I will be house hacking and renting by the room. I plan to keep my "business" finances separate from my personal finances. Does anyone have recommendations on free business credit cards? Also reccomendations for business savings/checkings accounts? Websites that automate rent collection? What do people think about Baselane?

    Any info helps! Thanks.

    Hi Jacob! Such good questions to be asking!! I personally like the American Express Blue Business Plus credit card. It has 0% APR for the first 12 months which is really nice if you need to do any rehab. I also gets a flat 2x points on everything and is a $0 annual fee.
    The sign-up bonus is on the lower end, but you can also earn membership rewards by setting up a free business bank account with AmEx. 
    I also really like the Chase Ink Unlimited. It also has a $0 annual fee and 0% APR for the first 12 months. I don’t have any experience with their business bank accounts. The Ink Unlimited gets 1.5x on everyday purchases and comes with a higher sign-up bonus than the Amex Blue Business Plus Chase Ultimate rewards are easier to transfer to partners and get very discounted travel with airlines like United and Southwest and hotels like Hyatt and Marriott. 
    If you do sign up for a business credit card, make sure to get a referral link from a family member or friend rather than just googling. And if you have any questions send me a DM!  
    1Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    5mo

    I would use the same bank where you have your personal account

    This makes things simpler in regards to transferring money + ease of remember username / passwords.

    I.E. if you use chase, open up a different account within chase.

    [email protected]917-280-8544
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