Structuring bank accounts

[Jesse Scheidel]

When setting aside money for Capex, Vacancies and maintenance, should you use multiple bank accounts? Is it best to have a bank account for each property or one account per LLC? What do you find to be the most efficient?

[Jim Rivell]

I have an LLC that owns 6 properties. The way we set it up was (1) account is for General Operations. This is day to day spending, rent collection, tax/utility payments etc. (1) account for all security deposits, (1) account for parachute fund, capex items etc. So 3 accounts total, all under 1 LLC at the same bank. We worked this out with our CPA and this was his recommendation so i recommend starting with 1 account and as you grow and scale talk to your CPA and banker to see what they are seeing other investors do and what they recommend for your situation