First Duplex Questions

[Brandon Sarrett]

Hello, 

I am under contract on my first Duplex. I used an FHA loan but I am concerned about accepting rental payments into my personal bank account. Should I set up an LLC, open checking account in business, and use this for collecting rent and paying morgage/expenses?

Or should I wait until I refinance and transfer property to LLC? Supplimentally, Do you all reccomend any bank accounts where you can easily manage sub accounts within main account? AmEx or Discover?

Separately, I will be needing to raise rent for existing tenant to match market rates.  Any advice on how to do this would be helpful.  I have heard of the "Binder Strategy" of being super transparent.

Any suggestions are appreciated, Thank you!

#AskDavid

[Brittany Minocchi]

I think you're over-thinking the bank account...if you don't want to use the account you have now, you could open a new one strictly for collecting rent. Is the tenant month to month? If so, at least 30 days notice for the increase in rent is typical. If they're in an annual lease, you'll have to wait until they're up for renewal.