Bank Accounts for Multiple Properties

[Satyam Mistry]

Hello, I am a newer member to BP, but am looking forward to learning as much as I can from all the experienced investors here. I currently have 6 rental properties and am curious to know how others with multiple properties handle banking. 

1. Do you have all your properties rents deposit into 1 bank account or have them go into separate accounts? 

2. How do you handle reserves for each property when using 1 bank account? Do you have a general rule such as 3-6 months reserves for each property and then try to maintain that balance times the number of properties if you are using just 1 bank account?

3. Would you use this same bank account that rent and reserves are deposited into to also draw for remodeling other properties or recommend a separate bank account that is used just for these remodeling draws for properties that you buy and rehab before renting? Most of the properties I am now looking for require some updates before renting so am curious what the best way to handle banking for these rehabs would be from an accounting standpoint. 

[Bill B.]

14 properties for 20 years. My largest expense was $2300 for an ac unit 10 years ago and $2600 for another unit 2 years ago. Probably 12 water heaters at $1,000 a piece, another 12 appliances all under $1,000. I would say the average year is $3-5k worth of repairs. With $20k per month in rent, $10k per month in income. It just isn’t an issue once you have more than 4 or 5 properties. 1 property is the most dangerous position to be in. 

My average tenant stays 4-8 years. 

I have 2 x 30 year mortgages because it made the payments sub $600 total PITI I have 2 x 15 years because they were my largest loans and I got a lower interest rate and tons of saved interest. I hate owing money and I didn't need the income so I've rolled all the profits back in to paying them off. I have 10 paid off properties and I'll pay off 1 in 2 years, another 2 years after that.ill probably leave the last 2 as they are maybe $100k

I have a property manager for all but 2 of my properties  8% of rent is my only PM cost other than $150 renewals and $300 new tenant commissions for realtors  

Like I said, I understand if you have 10 or 20 year asphalt roofs ($5-7k every decade or two) but I’ve spent less than $500 total in 280 “property years” on roof repairs. I’ve spent less than $1,000 total on heating (a couple igniters and a thermocoupler). Close to a zero on exterior painting. Your mileage outside of the southwest will vary. 

Ps. I sold my primary last July, the first property I’ve ever sold at 51 years old. I moved in to one of my rentals that my wife  I will live in for 2 years and then sell with the partial primary exemption. I’ll then move in to my out of state rental on Lake Minnetonka in MN. (They have 21 months left on an 8 year lease.)