Separate Bank Accounts for Property Income/Expenses?

[Andrew Rogers]

So I'm still in the learning process of real estate investing and this question randomly came to me. For those of you who currently have property and have (rental) income generating from it, do you have separate bank accounts for the income/expenses on those properties? I imagine everyone has their own personal checking and savings and was wondering if people have any additional accounts for these. Especially if your real estate investments/business are not your full-time job. And regardless of the answer, what is your reasoning for doing things the way you do in regards to your accounts? And an additional question if anyone just does it through their normal accounts, how do you keep track of the expenses and things like capex reserves on your properties?

Lastly, what should a new investor consider when deciding how to set up their accounts? I know it'll depend on everyone's own situation but any aspects I can look at, especially if they're not immediately obvious, would be useful to know.

[Cody Benedetto]

I highly recommend separate accounts. I have a separate checking account for each of my properties where I manage their finances. For the one that I self-manage, I also have a separate interest money market account where I hold the security deposit (if you use a property manager, they often manage this). Even if you have a property management company, it's worth isolating a checking account to keep things in order. Best of luck!