Welcome to the August 2018 rental income report! Gross rents ARE UP! Cash flow IS UP! My Second Property had another stable month with no repairs or maintenance expenses. And I officially took in some income from My Third Property. Things are looking good!
BUT, not so fast. My numbers this month are a little deceiving...
Why? Because....well, you'll find out below:
My First Property
I bought this single family house in December of 2016 and SOLD it in May of 2018. 2 Bed/1 Bath in a "C" Class neighborhood. NO AUGUST INCOME. See how it performed HERE.
My Second Property
I bought this single family house in March of 2018. 2 Bed/1 Bath in a "B" Class neighborhood. It's currently rented to two medical students on a 12-month lease.
Another smooth month, as I had absolutely no repairs or maintenance expenses. Just a straight month where I took full rent and paid my mortgage, property taxes, and insurance:
Gross Rents: $995
Property Taxes: $216.32
Property Management: $89.55
Income ($995) - Expenses ($696.62) =
Cash Flow from My Second Property: $298.38
My Third Property
I bought this duplex in July of 2018. Both units are 2 Bed/1 Bath in a "B" Class neighborhood. The lower unit is currently rented to a young married couple, and the upper unit is vacant and on the market for rent.
Like I said earlier, my August cash flow numbers are a little deceiving. Why?
Because I didn't have an August mortgage payment for my new duplex. That first bill won't come until September. So, this drastically inflated my Cash Flow. But, I'll take it! Especially since I only have one unit of my duplex rented right now.
Gross Rents: $850 (only 1 of 2 units rented)
Mortgage: $0 (first payment due in September)
Property Taxes: $0 (first payment due in September)
Insurance: $0 (first payment due in September)
Property Management new unit set up fee: $198
Repairs: $0 (this will jump up to $4,000+ in September when rehab is complete on top unit)
Income ($850) - Expenses ($198) =
Cash Flow from My Third Property: $652.00
Final August Cash Flow: $950.38
My August cash flow was AMAZING! But, it's all due to the fact that I didn't have a mortgage payment for My Third Property and I haven't paid for the rehab on my upper unit yet. Next month my new mortgage will kick in, but I'm really hoping my units will be fully occupied.
***VERY IMPORTANT NOTE: even though I brought in $950.38 after all my fixed expenses, I'm NOT TOUCHING any of this cash flow! This income will all be going toward my next investment and any future expenses. I already have a day job and side-hustles to cover my lifestyle expenses.
If I ever get to the point where I actually want to take the cash flow (like when I head out and live #VanLife), I would still only take about half of the cash flow and save the remainder for future expenses. This is SUPER IMPORTANT! ALWAYS factor in future vacancy/repair/maintenance expenses. Make sure you know how to properly calculate cash flow HERE.
Let me know if you have any questions!