And while on the phone with them, I realized I can build a wall in the foyer creating a separate entrance for us ( 1st floor tenants ).

We thought about doing separate accounts for capex and deposits as you mentioned above, but ended up opting for just one ‘rental’ account that everything for all our real estate goes in and out of.

The other option is to sign a purchase agreement with the seller, buy the property, then perform a separate contract with your end buyer.

No separate account although we do maintain an emergency account of $1,000 per property.

I hold my security deposits in a separate escrow account at my bank as PA requirements state.

In Wa we can keep the deposit in the general property account, other states want the amount kept in a separate interest bearing account.

I live in Westchester County, NY, and I am considering taking a room in the corner of my house on the first floor and turning it into a rental.The infrastructure is already in place where I would only have to put up a few walls to keep it separated from the rest of my house, but it is a large room with a closet and bathroom that I would like to rent out.It may not be much but I feel like this would be a step in the right direction and a good way to practice being a landlord.My question is: What kind of tax implication would this have on me?

If the water/sewer is separate, sometimes trash is part of that bill so they would each pay their own.

I assume they are deeded separately?

Are they separated and tenant paid?