Bank Accounts for STR’s? What do you do?

[Wesley Myers]

Been reading a lot of different scenarios for bank accounts with rental properties. Wanted to get your suggestion on my specific situation.

Just purchased our first STR condo here in PCB. Have $10k in reserves for repairs, unexpected expenses, etc... planning on setting up one separate account for everything. Reserves, income, expenses, all.

I haven't established an LLC yet but am considering since we own it 100% no mortgage. Would this be wise? Would like to purchase a few more on down the road and will set up separate accounts for each.

Does this route sound ok?

[Luke Carl]

@Wesley Myers

I’ve got like 40 checking accounts so it would take all night and a bigger iPhone to explain everything but you’re on the right track.

Sounds to me like you're plan is a great one! I would also do the LLC since you own it cash. Then I'd get a HELOC and use it for more properties unless you're like 100 years old.

Income in account (Airbnb/VRBO)

Cap Ex account (X%)

Invest account (X% for next property)

I use an app called Astra to make my transfers for me for free.

Read a book called Profit First and you shall find all the answers.

Great question!