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
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.
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.