​Welcome to Jump In Real Estate's January 2019 rental income report! After a rocky end to 2018 with negative cash flow, things turned around in January. Sorta. Cash flow was positive, but a TREE BRANCH fell on one of my properties. Yeah....that sucked....

Now, I have a delayed expense for this repair. Because I couldn't have work done to the roof with the freezing cold weather engulfing the midwest right now. My property manager and contractor patched it up and the tenants are fine, but like I said, work won't be done until February. Check out the full report 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 JANUARY 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 said, a freak branch fell on my roof! The lesson here? When buying a property, take note of the surrounding trees and branches. It's always good to assess pro-active trimming of any branches that are too close to your property. I've always been aware of the risks of tree branches falling on my roof, but I never really thought it'd realistically happen to me. Because work has not started on my roof, I did not account for any repair expenses in January. Repairs will take place in February.
​
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 rented to a young professional.

Pretty clean month, but I didn't make it through 100% unscathed. I had a couple small repairs to take care of and it cost me $200 to send someone out:

-There was a little water at the bottom of Unit 2's water heater pan. Inspected, but no leaks found.
-There wasn't electricity going to the garage door openers. They are now operational.

Income
Gross Rents: $1,725
TOTAL: $1,725

Expenses
Mortgage: $654.36
Property Taxes: $221
​Insurance: $60.50
Property Management fee: $172.50
Repairs: $200
TOTAL: $1,308.36

​Income ($1,725) - Expenses ($1,308.36) =
Cash Flow from My Third Property: $416.64

​
​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.

Not much to report here. ​We bumped up occupancy from 50% to 55% in the first few months and we're seeing rental demand is pretty strong for these units. We're in the process of rehabbing 23 vacant units and broke ground on another 10 in January. 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.

January was a reminder that freak accidents will happen when owning real estate. Always have cash reserves to take care of issues that pop up. And be aware of trees surrounding your investments. Pro-active trimming is a good idea :)

***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

​Welcome to Jump In Real Estate's December 2018 rental income report! Wow. The end of 2018. In quite a year of growth for me and my portfolio, I'm just gonna say it: 2018 ended with a sputter on the cash flow side of things. My properties all got hit by expenses, dropping my portfolio into negative cash flow this month. But, as I always say, it's impossible to achieve positive cash flow EVERY MONTH. Repairs and expenses WILL pop up. Just remember, it's a LONG game. Check out the details 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 DECEMBER 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.

December in Indianapolis = RAIN and SNOW. Rain and snow = a great chance to really test a roof. And testing definitely happened. This property had a little leak in the roof that came down around the chimney. And that resulted in a $1,208 repair....fun times! I had to repair 12 linear feet of roof around the chimney, coat it with ice and water shield, and place new shingles. That all resulted in negative cash flow for My Second Property to close out 2018.
​
Income
Gross Rents: $995
TOTAL: $995

Expenses
Mortgage: $346.25
Property Taxes: $216.32
​Insurance: $44.50
Property Management: $89.55
Repairs: $1,208
TOTAL: $1,904.62

Income ($995) - Expenses ($1,904.62) =
Cash Flow from My Second Property: -$909.62


​​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.

And...we're definitely not ending 2018 on a high note. I ran into a few more expenses on this property. The good news is I got my tenant in the bottom unit to re-sign a new 12 month lease. The bad news is it cost me a $299 "lease up" fee charged by my property manager. Don't be alarmed though, most PMs tack on a fee once they get a new lease signed. On top of that, I had a contractor go out to inspect the crawl space due to moisture issues. That cost me a cool $147.50 to have my PM drive there and show the contractor around. Lastly, I spend another $59 to create a duplicate mail key for one of my tenants. I just barely squeaked by this month and had a little positive cash flow.

Income
Gross Rents: $1,725
TOTAL: $1,725

Expenses
Mortgage: $654.36
Property Taxes: $221
​Insurance: $60.50
Property Management fee: $172.50
Repairs: $505
TOTAL: $1,613.36

​Income ($1,725) - Expenses ($1,613.36) =
Cash Flow from My Third Property: $111.64

​
​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 from 50% to 55% in the first couple months and we're seeing rental demand is pretty strong for these units. We're in the process of rehabbing 23 vacant units and expect to break ground on another 10 in January. 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.

The biggest lesson of December? ALWAY, ALWAYS, ALWAYS have reserves to pay for unexpected repairs, and always keep part of your cash flow for future expenses as well. Bottom line: have cash in your back pocket ready to be deployed for emergencies.

***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!

​-Tyler

​Welcome to Jump In Real Estate's November 2018 rental income report! All my units are rented and we're finally back to a POSITIVE cash flow month :)

On top of that, I had one of my renters renew their lease for another 12 months! That's always a great sign...because that means income will be coming in for another year. Check out the details 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 NOVEMBER 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.

Relatively smooth month, but I had one $95 expense. Aparently, the outlet in the washer/dryer room was loose and needed repair. Other than that, it was 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: $95
TOTAL: $791.62

Income ($995) - Expenses ($791.62) =
Cash Flow from My Second Property: $203.38


​​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 rented to a young professional.

This property is turning out to be the little trouble child right now hahaha. Had another little repair expense that popped up out of nowhere...Unit 2 had a leaky kitchen sink and the bathtub sealing was in need of repair. That came out to $126.50 in November. I also had a contractor go out and check the crawl space because there's standing water down there. I'll say this....it's not good. But, that'll be an update for next month.

Income
Gross Rents: $1,725
TOTAL: $1,725

Expenses
Mortgage: $654.36
Property Taxes: $221
​Insurance: $60.50
Property Management fee: $172.50
Repairs: $126.50
TOTAL: $1,234.86

​Income ($1,725) - Expenses ($1,234.86) =
Cash Flow from My Third Property: $489.14

​
​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.

Pretty boring month here for the 80-unit I invested in. Cash flow isn't expected until probably July of 2019 as we work to renovate units, bump up rents, and stabilize the property. But, work HAS started so everything is moving in the right direction!

Well, the good news is we're back to a POSITIVE cash flow month! Yes, there were a couple repairs here and there, but that's why you always run your number conservatively and have reserves ready.

***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

​Welcome to Jump In Real Estate's October 2018 rental income report! Gross rents were UP! Yup, all the way up! My units are now 100% rented. Phew. What a relief.

And...surprise! Here's the first sneak peak at the latest investment of mine. My Fourth Property officially closed on October 12th.

But, not everything is rainbows and butterflies...at least not yet. Cash flow still isn't where I want it to be...it's NEGATIVE for the second straight month.

See WHY 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 OCTOBER 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 pretty smooth month as I had no repairs or maintenance expenses. It was 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 rented to a young professional.

ATTENTION! ATTENTION! This property is 100% occupied.

It took about a month to get the upper unit rented and it took a price decrease, but bottom line, I'm now collecting full rent on this property. Even with the price decrease on the upper unit from $900 to $875, I'm at least getting more than I originally expected and planned for. So, there's a huge win!

But, there were still a few last lingering repairs, which really cut into cash flow again on this property. On top of that, my property manager takes the 1st month's rent on any new leases. So, I really didn't make money on this duplex in the month of October. I lost money.

Income
Gross Rents: $1,725
TOTAL: $1,725

Expenses
Mortgage: $654.36
Property Taxes: $221
​Insurance: $60.50
Property Management fee: $960 ($85 for Unit 1 + full month's rent for Unit 2)
Repairs: $632.50
TOTAL: $2,528.36

​Income ($1,725) - Expenses ($2,528.36) =
Cash Flow from My Third Property: -$803.36


​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.

Well, I guess I'm throwing you all a little curve ball here. I JUMPED IN on a large 80-unit multi family with a group of investors. I'm really loving large multi-family right now because of the control you have with this asset class. In this case, we purchased a distressed property (under 60% occupied) and will be putting $1 million+ into it over the next 7-9 months. We'll raise rents on the units, which increases cash flow. And the beauty of large multi-family? The value of the property is largely based on income (NOI). SO, with us raising rents...we also raise the property value.

IF...and this is a big "IF".....everything goes according to plan, the property should appraise for over $4 million, we'll be ALL-IN for $3.3 million, and we expect 10% annual returns for the first few years. In 3-5 years we'll assess a refinance to pull most of our money back out. I'm excited to see how this all plays out over the next 6 months, 1 year, 3 years, 7 years...

​Welcome to the September 2018 rental income report! Gross rents were the same as last month, as I STILL had one vacancy in my duplex. Oh yeah, I guess I should address the elephant in the room....

This month, I was at NEGATIVE cash flow.

Yup, fun times. See WHY 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 SEPTEMBER 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 pretty smooth month as I had no repairs or maintenance expenses. BUT, my property manager conducted their 6 month interior/exterior inspection (LOVE that they do these), and there's a little water damage in my living room ceiling. So, I'm expecting a repair expense next month. Other than that not-so-great-news, it was 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.

Here's where things get interesting. I paid my first mortgage AND I paid off my renovation.

This property was in pretty good shape overall when I closed on it, but still needed a little work to get the vacant upstairs unit up to speed and on the market for rent. A lot of basic work was taken care of (general painting, landscaping, new outlet covers, fixed flooring, new bathroom fan, two new garage door motors). It wasn't too bad AND luckily I asked for $4,500 back in credit at closing to pay for these repairs. Here's how it breaks down:

Income
Gross Rents: $850 (only 1 of 2 units rented)
TOTAL: $850

Expenses
Mortgage: $654.36
Property Taxes: $221
​Insurance: $60.50
Property Management fee: $85
Repairs: $6,918
TOTAL: $7,938.04

Credit
Credit at closing for repairs: $4,500

​Income ($850) - Expenses ($7,938.04) + Credit ($4,500) =
Cash Flow from My Third Property: -$2,588.04

So, you can see, my portfolio is VERY MUCH in stabilization mode. But, repairs are taken care of now and getting a new tenant to fill my vacancy will be amazing and should get me back on the positive side of things next month. Remember, real estate is a LOOONNNNGGGGG GAME. We're all going to have multiple negative cash flow months over the years. It's just part of owning real estate. 

***VERY IMPORTANT NOTE: even if I brought in positive cash flow after all my fixed expenses, I WOULDN'T TOUCH any of it! This income would all be going toward my next investment and any future expenses. I 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

​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

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

​​
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

​
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.