Rental Income 2016-02

Below are our monthly updates.  (disclaimer: I am pulling the data out of our Quicken system. I may on occasion make category revisions, therefore the month by month updates may not tie exactly to the year to date or year end totals.)

Gross Revenue : +$2,695

Duplex Unit#1: $1,375

Duplex Unit#2: $1,320

House: $0 – This property gets a tenant mid March

Expenses : -$3,766

Duplex: -$1,919

This breaks down to $1,885 in mortgages, and $33 in painting supplies.

House: -$1,848

Our House payment was $1,452 split between a first and second mortgage.

During the month we continued to get the house ready for rental, we spent $120 on paint and painting supplies.  We spent $41 on cleaning supplies.  And spent $173 on smoke detectors and other electrical supplies.

Utilities during the month were $62.

Monthly Profit : -$1,072

Duplex: $776  – Satisfied

House: -$1,848 – not satisfied…..continued duh

The property is almost there, it definitely took a lot longer to turn than it should have.  One of the difficulties in buying and then moving every year or so is that it is draining to simultaneously move/unpack in your new house while spending effort to get your last house ready to rent.  Especially as in this case we bought in November right before Thanksgiving and Christmas.  In addition we did some remodeling to our new house and then did some painting and other work on our old house.

The good news is that March, knock on wood, is shaping up to be a lot better and we should hopefully see the earnings/cash flow of these rentals take shape.

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Rental Income 2016-01

As I may have mentioned in other posts on my blog, we own a couple of rental properties.

We bought a Duplex in the summer of 2013 and lived in one of the two units for a year.

In the summer of 2014, we bought our second property, lived in it a little over a year and in the fall 2015 bought a third house that we just moved into.  Our second house was rented as of March.

Below are our monthly updates.  (disclaimer: I am pulling the data out of our Quicken system. I may on occasion make category revisions, therefore the month by month updates may not tie exactly to the year to date or year end totals.)

Gross Revenue : +$2,695

Duplex Unit#1: $1,375

Duplex Unit#2: $1,320

House: $0 – This property gets a tenant mid March

Expenses : +$6,619

Duplex: -$2,019

This breaks down to $1,885 in mortgages, and $134 in expenses.

$6.64 in mailing expenses, $21.48 for a new fence latch, $1.02 for a light switch and $104.42 for water/trash.

House: -$4,599

One of the lessons I have learned as a landlord is that it is really expensive to turn a property.  Between the vacancy, the cleanup , repairs etc.  The costs always skyrocket.

Our House mortgage was $1,452 split between a first and second mortgage.

In Jan we spent $300 on a make ready cleaning, that included a generous tip since our housekeeper cleared her schedule to get to our place.

We had some electrical work done $1,125, bought some of the lighting supplies, cans, covers, pendents & bulbs $263.  A new mailbox $70.  A new dryer vent $39.  A couple of new appliances including a dish washer $910 including installation. Towel racks $243, respirators $27 (we did some cleaning and painting).  Utilities $170.

We have a premium property in an up and coming neighborhood, so we spent a fair amount to get the house ready to rent.

Monthly Profit : -$3,924

Duplex: $676  – Satisfied

Rent was paid on time, minor repairs and this profit reflects cash out of profit.  Ie it ignores the pay down of principal, depreciation, tax benefits etc.

House: -$4,599 – not satisfied…..duh

Certainly not a positive month for the house.  But we are looking at some up front expenses, and I think this house will cash flow very nicely in the future.

 

 

 

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Net Worth 2016-02

Total Net Worth in February: $313,826 ($8,943)

February was a solid month.  The stock market particularly KMI rebounded, and we didnt have a ton of major expenses.

Assets: +$0

We continue to take a conservative view of property price appreciation, and have made no changes to the listed values of our real estate holdings.

I haven’t typically updated the value of the properties.  But I think going forward I will update our assets a couple of times a year and will probably do a full update next month.

Net Cash Accounts: (-$1,168)

Our cash balances were down slightly.  We did a lot better on spending and our credit card balances (which we pay off in full every month) were down $1,000.  Our checking account was down $2,500 as we made an extra payment to our personal loan.

Net Cash Rental Accounts: ($476)

We were slightly positive on our rental accounts even though we continued to spend money getting our house ready to rent.  Great news, we have new tenants that have signed a lease and will be moving into our house in March.

Hopefully with both rentals fully leased, we can see some improvement in this area over the next few months.

Retirement accounts: ($4,300)

The month was solid, KMI, knock on wood seems be turning the corner and rebounded from $15/share back to $18.52.   I still like the company for the long run, it has fantastic assets but its been tough to hang in there over the last year or so.

During the month, we moved about 1/4 of the cash in our 401K account into our other funds.  The market seemed oversold and each time we get a 10% pullback I try to move money from cash into equities.  In addition I turned off new contributions to the Vanguard Healthcare fund.  The Healthcare fund has been a huge winner over the last few years, but I believe this fund is at risk from being targeted in this political cycle.  Pharmaceutical companies  could be challenged for a while.  I don’t plan on selling anything in the fund, but its time to put contributions in other places. (Value, S&P, Small Cap)

Liabilities: ($5,335)

This was a much better month.  We were able to pay down our personal loan by $4,239 in Feb.  Hopefully we can have it paid off in March or at the latest in April.

The remaining improvement (approx +1,100) was just due to regular amortization on our other loans.

How did you do in Feb?