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Welcome to Jump In Real Estate's July 2019 portfolio update! First of all, I'm moving away from calling these INCOME REPORTS because, as my portfolio has become more and more complex (ie I've invested in 2 large multifamily assets as a limited partner), it becomes very difficult to report income with so many moving pieces. Also, for confidentiality reasons, I'm choosing not to report everything with so many partners involved in some of these deals. If you want to learn more, always feel free to contact me directly HERE. SO, the big news...I invested in MY FIFTH PROPERTY as a limited partner. This investment is a 164-unit property in Phoenix where I partnered with very experienced and proven operators. I'm SUPER excited about this one, because I completely trust the people I'm working with. This is similar to My Fourth Property in that it's a passive investment where I'm given equity in the asset in exchange for my investment. As I've gotten older I've become more and more conscious of the value of time. Why have my last two investments been passive multifamily investments as a limited parter? One word: TIME. Yes, I could continue to slowly build my portfolio one duplex at a time, but at least for now, I'm valuing the passivity of my last 2 investments and will always be flexible and open to new strategies. 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 JULY 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 on a 12-month lease.  As mentioned last month, I had a tenant move out on June 8th (I had them pay a full months rent) and a new tenant moved in on June 28th. That means I had to pay a $895 new lease fee. These fees are pretty standard in the property management world, so you'll learn to expect them. It sucks having to pay $895 for a new tenant, but, it is what it is, and I'm happy to have another 12-month lease in place! Income Gross Rents: $995 TOTAL: $995 Expenses Mortgage: $369.42 Property Taxes: $216.32 Insurance: $44.50 LEASING FEE (one-time fee for new lease): $895 Repairs: $0 TOTAL: $1,525.24 Income ($995) - Expenses ($1,525.24) = -$530.24 Cash Flow from My Second Property: -$530.24 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.  Some of you already know, but I visited Indianapolis in July! It's part of my plan to visit the market once a year, to check up on the portfolio, connect with my team on the ground, and re-evaluate the market. Welp, when I was out there in July and drove by this investment, I noticed something wrong...there was a HOLE in the siding right by the roof. So, about $1,000 later...it's fixed, after putting a nice dent in my July cash flow. Income Gross Rents: $1,725 TOTAL: $1,725 Expenses Mortgage: $725.24 Property Taxes: $221 Insurance: $60.50 Property Management fee: $172.50 Repairs: $1,155 TOTAL: $2,334.24 Income ($1,725) - Expenses ($2,334.24) = -$609.24 Cash Flow from My Third Property: -$609.24 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 distributions aren't expected until Q4 of 2019.  Occupancy has increased from 50% at acquisition to 78% with 10 new residents moving in during the second quarter. The goal is to be over 90% by Q4 of 2019 when we're expected to receive our first distribution. My Fifth Property This is a 164-unit apartment complex in Phoenix that a group of partners and I purchased. It was acquired for $19.75 million and we're investing $2.5 million into it over the next 24 months. Investor distributions aren't expected until June of 2020.  It was a BUSY month as every property in my portfolio saw some action. My single family got a new tenant, my duplex needed some repairs, my Louisville property saw occupancy levels rise, and I invested in My Fifth Property!
***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
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Welcome to Jump In Real Estate's June 2019 rental income report! We're on a roll here as I had another clean month with limited expenses. I also got lucky on a vacant property being turned over super quickly. The tenant in My Second Property had a lease that expired on June 8th. Well, technically it ended at the end of May, but I let my property manager know that I'd allow them to extended it into June in exchange for another full month of rent. Luckily, I got a new tenant in that property and they signed their lease at the end of June! Check out my June Income 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 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 on a 12-month lease.  As mentioned earlier, I had a tenant move out on June 8th (I had them pay a full months rent) and a new tenant moved in on June 28th. That means I got a little bonus rent from the new tenant as they paid prorated rent for 3 days. Income Previous Tenant Rent: $995 New Tenant Pro-rated Rent: $99.51 TOTAL: $1,094.51 Expenses Mortgage: $369.42 Property Taxes: $216.32 Insurance: $44.50 Property Management: $98.51 Repairs: $0 TOTAL: $728.75 Income ($1,094.51) - Expenses ($728.75) = $365.76 Cash Flow from My Second Property: $365.76 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.  Another very boring month...which I don't mind! I had no expenses other than mortgage, taxes, insurance, and property management. I love clean months! 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.  I have yet to receive a June update from the partners running the deal. So, that's a little concerning. They've been late the past couple months on updates and I HATE lack of communication. I have to follow up with them ASAP. Cash flow is still not expected until Q3 of 2019. FULL PORTFOLIO CASH FLOW: $911.52 It was great to have another clean and straight-forward month. I was admittedly worried about the vacancy of My Second Property, but luckily I got a new tenant in there quickly! Also, all my cash flow is going straight into my reserves for future expenses and I'll hope for another clean month in July.
***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 May 2019 rental income report! YES! I had another pretty dang clean month with limited expenses. *KNOCK ON WOOD* Cash flow was UP! One big note: the tenant in My Second Property has a lease expiring next month (June 8th). So this will be my last full month of rental income from that particular property for 2-3 weeks while I get it turned around, marketed, and re-rented. I have no idea what the condition of the place is in right now...I'll find out soon... Another random note: this marks the 1 year anniversary of selling My First Property. Glad to have that one off the portfolio...for many reasons. Check out my May Income 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 MAY 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.  Very boring month (which is a good thing haha!). I had no expenses other than mortgage, taxes, insurance, and property management. But, like I mentioned earlier I have an impending vacancy coming up real soon...June 8th to be exact. It should be an interesting June. 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.  Another very boring month...which I don't mind! I had no expenses other than mortgage, taxes, insurance, and property management. I love clean months! 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.  I have yet to receive a May update from the partners running the deal. So, that's a little concerning. I HATE lack of communication and I expect monthly updates. I have to follow up with them ASAP. Our last update in April stated that occupancy is up to 72.5%. 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 It was great to have another 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 June.
***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 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 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. Income Gross Rents: $995 TOTAL: $995 Expenses Mortgage: $346.25 Property Taxes: $216.32 Insurance: $44.50 Property Management: $89.55 Repairs: $1,387 TOTAL: $2,083.62 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. Income Gross Rents: $1,725 TOTAL: $1,725 Expenses Mortgage: $654.36 Property Taxes: $221 Insurance: $60.50 Property Management fee: $172.50 Repairs: $513.90 TOTAL: $1,622.26 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! -Tyler Welcome to Jump In Real Estate's February 2019 rental income report! WOW. What an expensive month :( I knew this was coming. And it finally hit the expense line. I took care of the somewhat major crawlspace issue at My Third Property. If you recall, when I bought the property, there was standing water in the crawlspace. I had a mold inspector verify this wouldn't be a huge health-issue, but I still had to find and prevent the water issues. Was it a foundation thing? Was it grading of the backyard? Was it leaky plumbing? More 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 FEBRUARY 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.  Little repairs add up. This month, I had some clogged up pipes to the washing machine, which required a plumber to take a look and repair them ($165). On top of that, the laundry room door kept jamming up, so I had someone go out there and replace it ($95). All in all, it was a positive cash flow month which is awesome!....but, I only brought in $38.38 after all expenses. Still, cash flow is cash flow! Income Gross Rents: $995 TOTAL: $995 Expenses Mortgage: $346.25 Property Taxes: $216.32 Insurance: $44.50 Property Management: $89.55 Repairs: $260 TOTAL: $956.62 Income ($995) - Expenses ($956.62) = Cash Flow from My Second Property: $38.38 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.  Fingers crossed, this is my last MAJOR repair for awhile... My crawlspace water issue is now officially fixed. And with that, came a hefty $6,000+ expense. FUN. TIMES. But, this is the nature of being in real estate. And another big reminder to always have plenty of cash reserves ready. So, all in all, I have a new drainage system in the crawlspace, and repaired the rotten and damp joists.
Income Gross Rents: $1,725 TOTAL: $1,725 Expenses Mortgage: $654.36 Property Taxes: $221 Insurance: $60.50 Property Management fee: $172.50 Repairs: $6,565.98 TOTAL: $7,674.34 Income ($1,725) - Expenses ($7,674.34) = Cash Flow from My Third Property: -$5,949.34 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. Below are a couple photos of the renovations in progress.
FULL PORTFOLIO CASH FLOW: -$5,910.96 I say this all the time, but 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.
It's going to take some time to make this money back, but I'm playing the LONG game and am not concerned right now. Yes, it's concerning to drop this kind of money, but I'm always evaluating and assessing the investment. ***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 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. FULL PORTFOLIO CASH FLOW: $715.02 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. FULL PORTFOLIO CASH FLOW: -$787.98The 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! FULL PORTFOLIO CASH FLOW: $692.52Well, 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... FULL PORTFOLIO CASH FLOW: -$504.98You can see my portfolio is still VERY MUCH in stabilization mode. But, with my units fully occupied and the last repairs taken care of (*knock on wood*), I should have a solid November. And once cash flow kicks in next year for My Fourth Property, the portfolio should be performing pretty well. Remember, real estate is a LONG 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 |
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