All Forum Posts by: Satyam Mistry

@Llewelyn A. Thank you for your detailed reply! I agree if having multi family properties it makes sense to have a different bank account for each of them. I am currently primarily doing single family homes so at some point when the portfolio increases in size may look into grouping some together maybe that are in a particular neighborhood and using the same account for those as I can imagine that once you get to a certain number of properties using just 1 account may be confusing from an accounting standpoint or it may still be ok if other accounting softwares are in place. What is your opinion on accounts for single family homes?

@Wesley W. Thanks for your insight. For an investor doing primarily single family homes would you recommend they use 1 checking account for rent deposits and regular expenses such as mortgage, interest, property taxes, and maintenance and then use 1 savings account for reserves that get drawn from for bigger ticket capex items? The reserves account would then also get fixed monthly deposits from portion of cash flow from rent?

@Max T. Hello Max, using a separate account just for reserves/capex is interesting that too making it a savings account rather than checking so it can earn some interest as you will not be drawing from that account too frequently. Am curious as to how you deposit into this reserve account from the cash flow that is going into your regular checking accounts for your properties? Do you deposit a certain % amount of cash flow into the account on a fixed basis say once every month or quarter?

@Kenneth Garrett Hello Kenneth, so this one checking account that is used for regular rent deposit and expense is the same one you use to draw for reserves/capex when needed? How about properties that need a $10-20k rehab at some point, if you are not financing this amount would you draw from that same checking account as well?  I am currently using Cozy to update and reconcile expenses for each individual property. 

@Bill B. Great insight, thanks for sharing! Wishing you all the best!

@Ryan Freet Thank you for the reply!

@Bill B. Thanks for the reply. When you had those 6 rentals were they all on 30 year mortgages to maximize cash flow? What %'s are you calculating for vacancy, maintenance, and capex in general? Now that you are at 13 rentals do you self manage or use a PM company?

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. 

Hello @Sterling Anderson I know this post is from about 9 months ago, but am curious on what the outcome of this home was? Were you able to find a partner to come in on this deal with and did you end up flipping the home or keeping it as a rental? I am also in Omaha and are curious as to what you are generally seeing in the Omaha market in terms of finding 70-75% ARV flips. Look forward to hearing from you.

Hello Elenis, congratulations on your growth in such a short amount of time. So many different ways that these deals got done! I am curious on the deal that you had done where the investor was out of country. Were you the buying agent they used to purchase this property and what are the terms you generally work with when managing a rehab for another owner as that is a crucial responsibility to oversee. Do you have some ownership equity on the deal? You had also mentioned that they will be purchasing more with you in the future, would you have some equity in these properties as well as you are finding and helping rehab them? Also, with your properties that you own outright or in partnerships do you manage them yourself or hire a property management company. Thanks for your time and best wishes on your continued journey!

Hello Raj, I am also new to BP, but would like to share a few thoughts. Your first property is very important in your real estate journey and congratulate you for deciding to take action. Was curious as to what market you are investing in and in general what trends you have been seeing as in is it currently a fast moving market or are even nicely done flips or rehabs sitting on market for some time? REO properties generally are a longer process to close on and sold AS IS with no warranties. I would suggest getting pre approval from a bank in your area before making an offer on any property so that you have that side ready to go and area clear on what terms they can offer you. If you plan on putting 20% down on a property you should know from a bank up to what purchase price you would be approved for and look for properties in that price range keeping in mind that if you are doing a rehab that you still have the cash or financing for that as well. Have you walked the property from the inside yet? Sales in the area of properties that have sold around $175k would likely be of properties that are privately owned not foreclosures or homes that have been vacant for an extended amount of time and should generally be in better condition than a foreclosure. This is something to take into consideration as if you are just doing a cosmetic update as there will be some non cosmetic updates that will come up as well that you want to budget for. As this is your first property I would suggest viewing many properties in the area in person so you can get a feel of what they are like on the inside and how much interest they are getting. When doing a remodel on your first purchase you should also be contacting general and or sub contractors and getting estimates on what items you are looking to get done. Making your offer contingent on a satisfactory inspection is also something I recommend being a first time investor as this data will give you a list of points to be aware of during a rehab as well.