Preparing for multiple investments

[Matthew Powell]

My wife and I own one Duplex in Washington and currently have one bank account that has all the funds from that property going into it. Is it necessary to have an account for each individual property that we acquire. Someone had advised us to have a different LLC and bank account for each individual rental property. Is this accurate? I imagine it would be a nightmare maintaining 100 different LLC's and 100 different bank accounts when we reach 100 rental properties. I don't think this was accurate advise.

[Aaron K.]

I wouldn't recommend that, it sounds like a nightmare, whoever advised that is concerned about liability. It may be a decent idea to group a few properties in an LLC and manage the liability risk that way. Kind of like the watertight compartments on the Titanic, or another ship (bad example I know) The person giving you that advice just wants their holdings as compartmentalized as possible and maybe isn't considering the cost of maintaining all the LLCs.