August 2018 - Income Report
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!