How do you manage your personal finical bank accounts.

[Eugene White]

I have one property that I'm using the BRRRR Method on and as i am getting closer to renting it out. I'm little confused on how to manage my finical accounts as i scale up. Do i have a separate account for each home or do i have one account titled maintenance, cap X, vacancy, for all properties? How do you manage your finical accounts?

[Ben Sears]

@Eugene White I think you'll get a bunch of different opinions so I'll share what works for me. I have two accounts, a business checking and a business savings or escrow account. I pay all of my general business and construction expenses out of the checking account. I take my rent, insurance money due, security deposits, maintenance/CapEx/vacancy and deposit it into the escrow (savings) account. I make withdrawals from the escrow on a monthly basis for property management fees and rental maintenance. I use excel to keep a ledger on each account. This ledger tracks how much i have in escrow for each category. It was a pain to set up but I find that it's much easier than opening ten different bank accounts.