Originally posted by @Nacquata Bryson:
With the first few months of this being a rental there were 2 hail storms and a pipe burst in the home. Thank God I have a stellar property manager who took care of the pipe burst( just took money out of the profits) but the hail damage, insurance stuff and I have a mortgage on the property that I have to go threw as well. I have heard of systems but I haven't had anyone tell me how. This is the main problem I keep running into, even when I read investment books, they tell you the what not the how. Example: You need to separate all of your business income/expenses from your personnel income/expenses. How do I do that when my plan was to take 6 months of my, go to my every day income to renovate my next investment. But based on the advice above I can't because that would be mixing funds. WHAT??? This is the type of things that are super confusing.
As far as mixing funds, the best way to prevent this is to have a separate bank account and a separate credit/debit card for your LLC. If you want to use money from your everyday job for renovations then you need to transfer money from your personal accounts to your business bank account. This is called a "contribution" to your LLC and should show as a contribution on your books. After the money is contributed from your personal account to your business account then your business can use the money for whatever business expenses you see fit.
Also, using an accounting software like QuickBooks or Xero to help organize income and expenses will make things 100x easier with tracking and when tax time comes. If you only have 1 property then you can probably get by with doing it yourself. But if you feel like its bogging you down too much then I would just pay a bookkeeper to keep track of everything for you so you can focus on more important things
