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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2 thoughts on “Rental Income 2016-01

  1. It is amazing how much a turn can cost between tenants. When I was a section 8 landlord, I realized that only government can afford a decent turn when you have such marginal tenants.

    When you have solid tenants, it may just be a once over, fixing a few small items that wore out. Good tenants want their deposit back, so they do what it takes to return the apartment back to the way it was when they moved in.

    Liked by 1 person

  2. Agreed, the importance of a top level tenant on wear and tear is incredibly important. We actually use a real estate agent who specializes in rental/investment properties to help us find our tenants.

    The funny thing is the last ‘tenants’ in this turn were my wife and I ….and our two dogs as we just moved out of the house. SO I cant exactly complain about the quality of the last ‘tenants’. (or maybe I should REALLY complain about how bad the last tenants were)

    Most of our expenses were due to the fact that we have a really nice property, and are charging a premium rent. ($2,200/m in south Dallas). We wanted to get some things done so that everything was repaired, cleaned, painted etc. And we could expect the house to be returned in the exact same condition when they move out.

    Like

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