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Welcome to Jump In Real Estate's April 2019 rental income report! PHEW! FINALLY! A clean and straight-forward month. I needed that. I had no repairs and expenses other than my monthly mortgage, insurance, property taxes, and property management. Cash flow was great this month! I will say, I was caught off guard regarding my mortgage, however, and it's been a GREAT learning moment. The assessed value of my properties went up and property taxes also went up! I'm now paying an additional $93 per month over my full portfolio. And that's somewhat of a big hit. The lesson here: run your initial numbers conservatively, because if your county decides to raise taxes, there's not much you can do. Luckily, paying an extra $93 per month isn't going to kill my portfolio, but it does kinda suck. 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 APRIL 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.  Like I mentioned early, it was a very boring month (which is a good thing haha!). I had no expenses other than mortgage, taxes, insurance, and property management. Income Gross Rents: $995 TOTAL: $995 Expenses Mortgage: $369.42 Property Taxes: $216.32 Insurance: $44.50 Property Management: $89.55 Repairs: $0 TOTAL: $719.79 Income ($995) - Expenses ($719.19) = $275.21 Cash Flow from My Second Property: $275.21 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.  Like I mentioned early, it was a very boring month (which is a good thing haha!). I had no expenses other than mortgage, taxes, insurance, and property management. Income Gross Rents: $1,725 TOTAL: $1,725 Expenses Mortgage: $725.24 Property Taxes: $221 Insurance: $60.50 Property Management fee: $172.50 Repairs: $0 TOTAL: $1,179.24 Income ($1,725) - Expenses ($1,179.24) = $545.76 Cash Flow from My Third Property: $545.76 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.  Occupancy is up to 72.5%! All the way from 50% when we acquired it. The goal is to be over 85% occupancy by July. Our biggest focus is to get these vacant units fixed up and rented to keep driving occupancy. Cash flow is still not expected until Q3 of 2019. FULL PORTFOLIO CASH FLOW: $820.97 After a few expensive months back-to-back-to-back, it was very welcoming to have a clean and straight-forward month. All this cash flow is going straight into my reserves for future expenses, and I'll hope for another clean month in May!
***VERY IMPORTANT NOTE: even though 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! -Tyler
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