Do you pay your mortgage payment out of your rental account?

[Mike M.]

Curious how you all have you accounts set up. Right now I have a rental account where the deposit is made from the renter, then every month i pay my mortgage payment from my general bills account manually. I would like to find a way to automate some of this though. For example, I am contemplating having 50% of my mortgage payment ($400) come out of my direct deposit from my W2 employer, twice a month, into the rental account. Then the due date of the mortgage payment just have it automatically debit my rental account. Your thoughts?

[Nathan Gesner]

Account A: All rent payments deposit into this account. I pay mortgage, taxes, insurance, repairs, management, etc.

Account B: Tenant security deposit is held separate from all other funds to ensure I don't spend it.

Rent income should be more than enough to cover the mortgage so why are you putting money into the account? If the rent doesn't cover the mortgage, I recommend you stop worrying about accounts and figure out how to sell the property and learn how to cash flow. Every rental should produce enough income to pay the mortgage, taxes, insurance, repairs, improvements, and even property management. Each property should be 100% self-sustaining.