My Second Property is officially a performing asset. Today, I got my first rental payment. With my tenant's lease starting on May 22, I received pro-rated rent for the remainder of May. That adds up to the grand total amount of $331.60.
I'll get my first full rental payment on June 1st for the amount of $995. Below is what I should expect my monthly finances to look like on this property:
As you can see, my expected monthly cash flow is $148.65 per month. That's after I set aside money for repairs ($99.50) and vacancy ($49.75) and keep them in my reserves. ALWAYS, ALWAYS, ALWAYS factor in vacancy and repairs in your numbers for future expenses!!!
Now, what do I say next...
Well, I'm really not sure. WOW. Another property in the portfolio. Another property in Indianapolis. 2,000+ miles away from my home in the San Francisco Bay Area. The property is officially rented and cash flowing! Crazy how I've now been involved in 3 real estate transactions (2 purchased + 1 sale) over the past year and a half. This all has really developed so fast.
Luckily, I was put through an experience early on that greatly contributed to my growth in the real estate world. I adjusted my strategy on this property and I'm confident in better long-term stability and returns on this one. Jumping Into a higher priced property in a better neighborhood is critical for my investing goals and I'll continue this strategy moving forward.
-It's amazing to reflect on the whole process from initial analysis, to offering, to negotiation, to marketing, to property management. There's a lot that goes into investing in out-of-state real estate, but it's all worth it once you get that first rent check.
-Just because you get that first rent check, doesn't mean everything is going to be great and dandy from there on out. Challenges will pop up, unexpected expenses will be thrown at you, but remember, buy and hold investing is a LONG-TERM play.
Acquiring My Third Property, OF COURSE! Stay Tuned!
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Happy Investing and Best of Luck!