Bank Options for REI??

Question

I am somewhat new to this investment game and am curious to see what platforms, banks, and apps you investors out there use that you like and work well for you to keep track of financials as you scale to more properties? I just read the article about Baselane and that seems like it may work. I'm currently just using the same bank (separate bank accounts of course) that is linked to my personal bank but have figured that may not be the best option even though it works now. Let me know your thoughts. I'd love to hear some insights!

Leo Stein · Answer

Separate accounts can help, but I’d label any transfers between them clearly so they don’t get mistaken for income or an expense when you review the month. Before changing banks, try a test month and see whether you can pull a clean property-by-property report without extra cleanup.

BJ Everson · Answer

Adam — separate accounts already puts you ahead of a lot of first-time duplex owners. I would not rush to switch banks just because an article mentioned a platform. What matters more is being able to see each property's rent, loan payment, and repairs without mixing them with personal spending, and reconciling that monthly instead of waiting until April. Receipts (or invoices saved the same week) matter because your CPA cannot tell a repair from an improvement from a memory of a Venmo. I am not a CPA and I would let yours draw the repair-vs-capex line, but I would ask that question now, not at year-end, because it changes how the year looks. A simple monthly close per property — rent in, loan, taxes/insurance, repairs, and any money you put in — will scale better than a new app with messy categories. Since you already own the first duplex and want to stay in multifamily, that habit will matter more than the logo on the checking account.

Matthew Morrow · Answer

@Adam Neeley I'd test the reporting before moving the money. Take one property's last month and see whether the system can separate rent, repairs, loan payments and money you contributed yourself, then export it cleanly for your accountant. Also check account fees and what happens if you stop using the app. If your current bank works, better tracking may be the missing piece rather than a different bank. No need to make the setup more complicated just because you're adding properties.

Sundeep Babbar · Answer

Adam, with two doors I'd keep the rental accounts clearly separate from personal even at the same bank, and I wouldn't wait until year-end to total the paper P&L. Each month I match the statement to receipts and tag the property plus repair vs improvement, so the new CPA isn't sorting a year's paper at once. I'd ask them how they want that capex line drawn, since it changes the return.

Adam Neeley · Answer

Good stuff! Thanks for the knowledge! I need to check in with my (new) CPA and see what works best for him. I don't want it to be a nightmare for him going forward as I grow with this. Right now I am literally using old school pen and paper to keep track of profit and loss, keeping receipts (is this really important?), and plan to total it all at the end of the year. I did read about some of the expenses being classified as capex or other? Is that another avenue I need to be aware of? Again, I appreciate all of your insights on this. I imagined a scenario after reading about one of the REI platforms recently and didn't want to put myself in a harder place than I need to looking forward... Set the groundwork to make everything easier for myself and the CPA!

John Racine · Answer

@Adam Neeley on receipts: yes, they matter. Your bank statement shows you paid the hardware store $400. Only the receipt shows whether that was paint or a water heater, and which property it went to. That's what your CPA needs to classify the expense, and it's your backup if you're ever asked to support a deduction. I take a photo of each one and attach it to the transaction in my bookkeeping software, so it's never in a shoebox.

On capex, the rough line is: a repair keeps the property in the condition it's already in (fixing a leak, patching drywall, replacing a broken faucet) and is usually expensed that year. An improvement adds value, extends the life of something, or adapts it to a new use (new roof, new HVAC, a full kitchen) and is generally capitalized and depreciated over several years. There are safe-harbor rules that move that line, which is why Sundeep's right that it's a question for your CPA. If you ever furnish a unit for mid-term stays, the furniture and appliances get their own treatment too.

I'm not a CPA, so let yours make the final call. But pen and paper totaled once a year is where receipts go missing. Moving it into whatever software your CPA prefers now, while it's only two doors, is the easiest it'll ever be.

John Cafarelli · Answer

Adam, you're already asking the right question, because the bank setup is what makes the bookkeeping easy or miserable later. I keep a separate checking account for each property, plus one shared savings account for reserves, and I never let rent, repairs, or personal spending mix in the same account. Each month I reconcile every account, tag each transaction by property and category, and save the receipt or invoice the same week, not at tax time. That habit alone has saved me hours when my tax preparer asks for totals. I also keep a simple monthly close checklist: rent received, late fees, utilities, repairs, insurance, and loan payments, all checked against the bank statement. If a platform doesn't let you see each property separately, it will slow you down as you grow. Start simple, stay consistent, and pick a setup your tax preparer can actually work from.

Chris Seveney · Answer

Depending on location, sometimes it is preferred to use a small local bank or credit union if they will lend to investment properties. Credit unions typically have the best rates, and you can establish a banking relationship with them at the same time.

John Racine · Answer

Adam, separate accounts already puts you ahead of a lot of people.

My setup: all my properties are held in an LLC, and I bank with Relay so each property has its own account. Each property's income and expenses run through its own account, so I can see at a glance which one is carrying its weight. I keep reserves separate by property too, so a big repair on one doesn't drain the cushion for another.

The bank is only half of it. You also need bookkeeping that tracks every transaction by property. Two options worth a look:

REI Hub is built specifically for landlords. You add each property and it sets up property-level tracking for you, with a chart of accounts already organized for rentals. Connect your bank accounts, assign transactions to a property, and you get per-property reports and Schedule E-ready numbers at tax time without building anything yourself.

QuickBooks is more flexible and almost every CPA knows it, but it's general business software. To track by property you have to set that up yourself with classes or locations, which takes more work and more discipline to keep clean.

Either one works. I'd pick whichever you or your CPA are more comfortable with, since your CPA is the one who has to work from it every year.

What are you tracking with now: a spreadsheet, or something tied to the bank?

Bank Options for REI??

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