Allocating expenses in bank accounts

[Adrian Fajardo]

Hello BP community! I'm very excited to be here and always happy to accept any tips from anyone. I'm still on the early stages of my investing journey and I ran into this question while studying. When I do get a property I was advised that I should create a new bank account for that property alone and have all income from that property deposited to this account and have expenses pulled from it. 

My question is: 

- How do you allocate, for example money set aside for vacancies, repairs or capex? do you just keep all of them in savings as one lump sum? 

- If say for example, a roof needed replacement therefore a huge chunk of the money on the savings account would have to be used for payment but if what you set aside for capex isn't enough, do you take from your vacancy budget or repairs budget?

I hope my question is clear enough. Any advice would be much appreciated. Thanks guys and good luck to you all!

[Derek Wheeler]

This is a good question. I am curious, as well. Currently, I bank through Simple. It is an online bank, and what I like about them is:
1. Checking with interest.
2. No fees for anything. Overdraft, new card, maintenance - nothing.
3. The best one - they let you create "goals" within your account that allows you to allocate money from your primary account into smaller side accounts housed under your primary account. You set your goal date, amount, and give it a name, and Simple automatically pulls a certain amount out each day to help you save for that goal without you doing anything but keeping money in the account. I use this option to allocate things like taxes, rainy day fund, etc etc.

I am going to try to see if they do business accounts. I am sure there are better banks out there; I am just already established with them.