How to manage rentals as a business

[Cody Clinton]

Hello BP Family!

So I'm closing on my first rental and plan on aggressively scaling in the next few years and beyond and am looking for a little advice from some experienced investors here at BP. I will be turning these future rentals/investments into a business and am looking to treat it as such from day 1. I have already talked to CPAs/lawyers and made a plan with how I will be structuring the investments as far as LLCs and Corporations and LLCs owned by corporations and all that legal tax mumbo jumbo (which is extremely important asset protection and tax mumbo jumo but not the root of my question).

My question has to do with the day to day managing of incoming rental income. I've heard strategies like creating different personal checking accounts for each address, using quickbooks to manage income for P and L and balance sheet purposes, or even just a base spread sheet for the same. The intention is to have hundreds of units over the course of the next few decades (god willing) and then even having this business span generations if possible. Just wanted to see if there is any income software I should be utilizing and things of that nature. The goal is to systemize and grow and eventually hire people to take over those systems as I move out of the business and like I said that is the mindset I want to use from day 1. I don't want to do what's easy now and be scrambling as I grow to develop the processes I need.

Any and all advice is appreciated! Thank you all for your consideration.

[Daniel Hyman]

Work with your CPA to create a strategy for bookkeeping, document retention, and tax compliance so you can scale with confidence.