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:
Gross Rents: $995
Property Taxes: $216.32
Property Management: $89.55
Income ($995) - Expenses ($696.62) =
Cash Flow: $298.38
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!