Welcome to Jump In Real Estate's March 2019 rental income report! After a month of major repairs in February, things got a little better this month, but I was still in the red. I finally paid for the tree damage My Second Property got hit with earlier this year, and I had another plumbing issue. Check out details for each property 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 MARCH 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.
I finally paid for that dang tree damage that took place earlier this year. That was a solid check to write.
Also, I needed another plumber to go out and re-check the laundry room. There was more clogging occurring, so a plumber went out and an extended pipe needed to be installed.
Gross Rents: $995
Property Taxes: $216.32
Property Management: $89.55
Income ($995) - Expenses ($2,083.62) =
Cash Flow from My Second Property: -$1,088.62
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 rented to a young professional.
This month, I had to pay my ANNUAL HOA fees, which came to $315.90.
On top of that, I had a maintenance tech go out and check the furnace and AC in the lower unit, as my tenant sent in a complaint saying their heating bill went up drastically this month. Maybe because it's been colder and furnace usage went up??? Either way, it still cost me to have someone check it out.
Gross Rents: $1,725
Property Taxes: $221
Property Management fee: $172.50
Income ($1,725) - Expenses ($1,622.26) =
Cash Flow from My Third Property: $103.74
My Fourth Property
This is an 80-unit apartment complex in Louisville that a group of partners and I purchased. It was acquired for $2.25 million and we're investing $1.05 million into it over the next 7-9 months. Cash flow isn't expected until July of 2019.
We were able to bump occupancy of this property up to 63% (up from 50% when acquired) and we're seeing rental demand is pretty strong for these units. Our biggest focus is to get these vacant units fixed up and rented to drive occupancy. Cash flow is still not expected until Q3 of 2019.
FULL PORTFOLIO CASH FLOW: -$984.88
It's been a rough month for me in the real estate world. A couple major expenses (roof damage from a tree + crawl space work) wiped out my maintenance/repair reserves. I'm going to need a few solid months of cash flow to get back on track and build up my reserves again.
Like I always say, real estate is a LONG game. I've been doing this for a little over 2 years now. At this stage in my investing career, there's no way I could expect to be cash flowing every single month with my portfolio. That's just unrealistic. Fingers crossed things turn around on the repair/maintenance expense side and I start bringing in more money than I spend :)
***VERY IMPORTANT NOTE: even if I brought in positive cash flow after all my expenses, I'M NOT TOUCHING any of it! This income goes toward my next investment and any future expenses. I have a day job and side-hustles to cover my lifestyle :)
If I ever get to the point where I actually want to take the cash flow, I would still only take about half of it 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!