How do you run your rentals from a banking & entity POV?

[Thyra Dixon]

Hi BP community! I'm looking for advice on the best way to manage my BRRRR properties and the entities and finances associated with them.

Here's where I'm at now:

I currently own one SFR that is under renovation for rental. I purchased this under the name of LLC#1. I have the cash set aside in a bank account to cover the reno and all costs until it is rented and I can refi it.

I just got an offer accepted on SFR #2. I have the cash for this purchase and property in a general savings account.

I have two more offers in counters. The money for these projects is also in the general savings account.

Property #1 will have to wait for 6 months to season for my refi since I didn't get reno costs on the HUD-1 but all projects going forward will be set up to qualify for delayed financing.

My question is how does everyone else manage and track the money?

Should I buy each house in a separate LLC? (I do have 4 other LLCs open and sitting empty if this is the best route.) This would require having a separate bank account for each LLC/Property. Right now $14 acct fee/mo/property at 3-4 houses is no big deal. But the goal is to grow quickly - I have three funds for BRRRR which I hope to turn over 2-3 times per year, adding 6-9 properties per year. That creates a lot of LLCs and bank accounts and monthly fees.

Since all the homes are in the same market, should I just keep them in one LLC and run them through the same bank account? Or does this make separating expenses per property too complicated?

Am I overthinking it?

What do all the experienced investors out there do?

Thanks in advance for any advice and guidance you have to offer.

Thyra