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: Income Gross Rents: $995 TOTAL: $995 Expenses Mortgage: $346.25 Property Taxes: $216.32 Insurance: $44.50 Property Management: $89.55 Repairs: $0 TOTAL: $696.62 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. Income Gross Rents: $850 (only 1 of 2 units rented) TOTAL: $850 Expenses 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) TOTAL: $198 Income ($850) - Expenses ($198) = Cash Flow from My Third Property: $652.00 Final August Cash Flow: $950.38 Conclusion 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! -Tyler
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Welcome to the July 2018 rental income report! As I predicted last month, My Second Property stabilized and I had no repairs or maintenance expenses. Fingers crossed I get a bunch more of these months and bring in the maximum cash flow possible! On top of having My Second Property performing at 100%, I also acquired My Third Property. Because I literally closed on the last day of July (my birthday!), I didn't bring in any rental income from that property even though one of the units in the duplex is occupied. That income will show up in the August 2018 income report as I also try to get up to 100% occupancy. Let's take a look at the July numbers: 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 JUNE 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. 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: Income Gross Rents: $995 TOTAL: $995 Expenses Mortgage: $346.25 Property Taxes: $216.32 Insurance: $44.50 Property Management: $89.55 Repairs: $0 TOTAL: $696.62 Income ($995) - Expenses ($696.62) = Cash Flow: $298.38 FULL PORTFOLIO CASH FLOW: $298.38 Conclusion My July cash flow was right at the peak since I had no expenses other than my fixed costs. ***VERY IMPORTANT NOTE: even though I brought in $298.38 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've got a day job 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 $298.38 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! Thanks Jump In Nation! -Tyler Welcome to the June 2018 rental income report! I'm getting really close to stabilizing My Second Property, which should conservatively cash flow $150 per month and range up to $300 a month. After another minor repair on My Second Property, I'm really looking forward to July to see this property performing how I envision it should. Honestly, these reports are going to be pretty bare for at least another month as I look to ramp up the number of doors I have after selling off My First Property earlier this year. Here are the June details: My First Property I bought this single family house in December of 2016 and SOLD it in May of 2018. 2 Bed/1 Bath. C-Class neighborhood. NO JUNE INCOME. See how it performed HERE. My Second Property I bought this single family house in March of 2018. 2 Bed/1 Bath. B-Class neighborhood. It's currently rented to two medical students on a 12-month lease. Pretty straightforward month, although I did have a $152 maintenance expense to install a couple new window blinds in the kitchen and bedrooms. Luckily, for some reason, there were brand new blinds sitting in a box in the house when I bought the property, so I was able to install those. I also had to remove an old AC unit from the garage. Income Gross Rents: $995 TOTAL: $995 Expenses Mortgage: $346.25 Property Taxes: $216.32 Insurance: $44.50 Property Management: $89.55 Repairs: $152 TOTAL: $848.62 Income ($995) - Expenses ($848.62) = Cash Flow: $146.38 FULL PORTFOLIO CASH FLOW: $146.38 Conclusion My June cash flow was right around $150 and that's exactly what I expect from my current portfolio of just one property. Because I always account for maintenance/repair expenses, again, this falls in line with my expectations. Hopefully, next month I'll be closer to the $300 cash flow range. I don't expect many maintenance/repair issues for awhile now. |
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