Property X
Apt 1- Black Family: $735 ($35 LATE FEE)
Apt 2 - Black Couple: $535 ($35 LATE FEE)
Total Rents Received: $1270
Repair Costs: $1800 (Labor and materials for chimney liner)
Total Profit for Anita: -$650 ($1270 - $1800 - $120 Alfonso Maintenance Fee)
Property X 2016 Totals
Total Income: $8,928.85
Total Repairs: $4,832.89
Total Water Bills: $414.28
Property 1
Apt 1 – Dharma and Family: $525
Apt 2 - Belle and Sebastian: $875
Total Rents Received: $1400
Mortgage: $831
National Grid: $151.30
Repair Expenses: $0
Total Profit: $417.70
Property 1 2016 Totals
Total Income: $2,427.16
Total Repairs: $1,698.30
Total National Grid: $1,983.09
Total Water Bills: $453.45
Property 2
Apt 1 – Gianna: $785 ($35 LATE FEE)
Apt 2 - Nicolas: $660 ($35 LATE FEE)
Total Rents Received: $1,445
Mortgage: $751
Repair Expenses: $56.47 (Bathroom door and knob, labor for washer check)
Total Profit: $637.53
Property 2 2016 Totals
Total Income: $2,645.05
Total Repairs: $2,372.21
Total Water Bills: $731.50
Property 3
Apt 1 - Chucky: $435
Apt 2 – Thomas: $550 ($25 LATE FEE... $10 forgiven)
Apt 3 – Rory: $515
Apt 4 - Taniqua and Eugene: $535 ($35 LATE FEE)
Total Rents Received: $2,035
Mortgage: $918
Repair Expenses: $206.47 (New refrigerator and door knob for Eugene and Taniqua)
National Grid: $262.27
Total Profit: $648.26
Property 3 2016 Totals
Total Income: $8,881.15
Total Repairs: $547.65
Total National Grid: $3,271.36
Total Water Bills: 766.02
Property 4
Tenant Latisha: $900
Mortgage: NOTHING
Repair Expenses: $146.63 (Fridge Repair, thermocouple and labor)
Total Profit: $753.37
Property 4 2016 Totals
Total Income: $1,394.37
Total Repairs: $3,362.68
Total National Grid: $56.31 (used when house was vacant)
Total Water Bills: $41.31
2016 Lawn Care Totals: $670
Net Real Estate Profit for December 2016: $2,456.86
Net Real Estate Profit for 2016: $14,419.27
Wow. I did it. As I wrote in an earlier post, I had to make at least $1,000 a month in 2016 to prove that I know what I'm doing in this real estate game. I averaged $1,201.60 a month, which was great considering all the repairs I had to make.
Property X had an issue with the chimney this month, where condensation would form water that would leak down the chimney and into the furnaces. This means that every time there was a change in temperature (which happens all the time in Smalltown), water would get into the furnaces and flood out the pilot. Alfonso would have to come over and pump the water out and restart the pilot, which becomes a massive pain in the ass. I had to call my electrician Floyd to install a chimney liner for $1,800, parts and labor. It was a lot of money, but I was okay paying for it. This year, Property X really surprised me. Thanks to Handyman Alfonso, that place has gone from one of the worst investments to one of the best. And we did it with tenants that came from Smalltown's dreaded south side! I think this year proved that I definitely went about Property X's management the wrong way. I was always looking for the best tenants, but not the best for that area. Once I got the right people, that place started making money. If it weren't for the chimney liner, Anita would have made over $10,000 from that place. Nevertheless, it performed great. It even beat out Property 3, which has 4 apartments!
Property 1 was good this year. I have a good thing going with Belle and Sebastian, and now with Dharma's clan. Like Property 2, the biggest drain on property profits was my lack of experience doing turnovers on my own. I spent so much money on things I didn't end up needing, and got lazy when I couldn't muster up the motivation to finish the job. Other than that, it was business as usual. The new tenants in Property 1 are good, and Gianna will work out fine in Property 2 until I throw her out. Once I get her out, I can finish what I started and attract better quality tenants to that place. Nicholas was late with his rent this month but I let him slide... kind of. He's only allowed one late payment for 2017, and after that I'm gonna throw him out. Both Properties 1 and 2 made around $2,500 each for the year. With lower monthly payments and better control of turnovers, I should be able to increase their profits next year.
Property 3. Even with having to buy Eugene a new refrigerator, Property 3 has a hard time NOT making money. Thomas somehow found a way to pay me $550 all in one shot, and I have no idea how he's doing it. I mean seriously, the guy is struggling just to have $10 a week to eat, so how is he coming up with all this money?? Ah well, I'll chock it up to all the good luck I'm having with that place. I mean, I spent a grand total of $547.65 in repairs for the ENTIRE year. That's just crazy! The people there keep to themselves and don't bother me, and I definitely appreciate it. I'm not sure what the endgame is for that place, but I'm gonna sit back and enjoy the ride until the wheels come off.
With Property 4, I really have some work to do. Alfonso and I had to go there twice for that damned water heater. I also had to call the refrigerator repairman to fix a recurring problem where the ice builds up and blocks the freezer's cold air path to the refrigerator. Three days ago, Latisha texted me that the washer/dryer is now not working. Fuck. I made a mistake trusting those used appliance guys in Utica, and now I'll have to pay for it. I'll probably have to end up buying her a new refrigerator and a new hot water tank. And I'll do it because Latisha is an awesome tenant. She's the first African-American tenant to pay me on time for more than two months. And she's had to endure countless issues thanks to those defective appliances, yet she still has a good attitude about anything. Property 4 was my big purchase of 2016, and I'm not too happy with the purchase. But if it has any chance of succeeding, I need to keep a tenant like Latisha for stable rental income. So chances are that I'll be in the red at the beginning of 2017 for Property 4, but it'll be worth it in the end.
And that's that. 2016 is over and 2017 will be here in a short while. I made $14,000 in rental income, and I'm expecting to triple that when I purchase my fifth property next year. The one that allows me to retire. 2016 was good, and I learned how to be a better landlord and property manager. I made some mistakes, but I learned from them. The proof is in the profits, as this was the first year I made respectable profits. A toast to 2017, with more lessons to learn and money to make on the horizon.
P.S.: I like the way I did this post, and I plan to do all my year end earnings reports like this. It becomes easier to do my taxes, as most of my estimates are right here! All I have to do is add in my W2s from my paycheck jobs and I'll be all set. And I definitely need to do my taxes early, as Tax Guy Matt charged me an arm and a leg for filing my 2015 taxes late.
Apt 1- Black Family: $735 ($35 LATE FEE)
Apt 2 - Black Couple: $535 ($35 LATE FEE)
Total Rents Received: $1270
Repair Costs: $1800 (Labor and materials for chimney liner)
Total Profit for Anita: -$650 ($1270 - $1800 - $120 Alfonso Maintenance Fee)
Property X 2016 Totals
Total Income: $8,928.85
Total Repairs: $4,832.89
Total Water Bills: $414.28
Property 1
Apt 1 – Dharma and Family: $525
Apt 2 - Belle and Sebastian: $875
Total Rents Received: $1400
Mortgage: $831
National Grid: $151.30
Repair Expenses: $0
Total Profit: $417.70
Property 1 2016 Totals
Total Income: $2,427.16
Total Repairs: $1,698.30
Total National Grid: $1,983.09
Total Water Bills: $453.45
Property 2
Apt 1 – Gianna: $785 ($35 LATE FEE)
Apt 2 - Nicolas: $660 ($35 LATE FEE)
Total Rents Received: $1,445
Mortgage: $751
Repair Expenses: $56.47 (Bathroom door and knob, labor for washer check)
Total Profit: $637.53
Property 2 2016 Totals
Total Income: $2,645.05
Total Repairs: $2,372.21
Total Water Bills: $731.50
Property 3
Apt 1 - Chucky: $435
Apt 2 – Thomas: $550 ($25 LATE FEE... $10 forgiven)
Apt 3 – Rory: $515
Apt 4 - Taniqua and Eugene: $535 ($35 LATE FEE)
Total Rents Received: $2,035
Mortgage: $918
Repair Expenses: $206.47 (New refrigerator and door knob for Eugene and Taniqua)
National Grid: $262.27
Total Profit: $648.26
Property 3 2016 Totals
Total Income: $8,881.15
Total Repairs: $547.65
Total National Grid: $3,271.36
Total Water Bills: 766.02
Property 4
Tenant Latisha: $900
Mortgage: NOTHING
Repair Expenses: $146.63 (Fridge Repair, thermocouple and labor)
Total Profit: $753.37
Property 4 2016 Totals
Total Income: $1,394.37
Total Repairs: $3,362.68
Total National Grid: $56.31 (used when house was vacant)
Total Water Bills: $41.31
2016 Lawn Care Totals: $670
Net Real Estate Profit for December 2016: $2,456.86
Net Real Estate Profit for 2016: $14,419.27
Wow. I did it. As I wrote in an earlier post, I had to make at least $1,000 a month in 2016 to prove that I know what I'm doing in this real estate game. I averaged $1,201.60 a month, which was great considering all the repairs I had to make.
Property X had an issue with the chimney this month, where condensation would form water that would leak down the chimney and into the furnaces. This means that every time there was a change in temperature (which happens all the time in Smalltown), water would get into the furnaces and flood out the pilot. Alfonso would have to come over and pump the water out and restart the pilot, which becomes a massive pain in the ass. I had to call my electrician Floyd to install a chimney liner for $1,800, parts and labor. It was a lot of money, but I was okay paying for it. This year, Property X really surprised me. Thanks to Handyman Alfonso, that place has gone from one of the worst investments to one of the best. And we did it with tenants that came from Smalltown's dreaded south side! I think this year proved that I definitely went about Property X's management the wrong way. I was always looking for the best tenants, but not the best for that area. Once I got the right people, that place started making money. If it weren't for the chimney liner, Anita would have made over $10,000 from that place. Nevertheless, it performed great. It even beat out Property 3, which has 4 apartments!
Property 1 was good this year. I have a good thing going with Belle and Sebastian, and now with Dharma's clan. Like Property 2, the biggest drain on property profits was my lack of experience doing turnovers on my own. I spent so much money on things I didn't end up needing, and got lazy when I couldn't muster up the motivation to finish the job. Other than that, it was business as usual. The new tenants in Property 1 are good, and Gianna will work out fine in Property 2 until I throw her out. Once I get her out, I can finish what I started and attract better quality tenants to that place. Nicholas was late with his rent this month but I let him slide... kind of. He's only allowed one late payment for 2017, and after that I'm gonna throw him out. Both Properties 1 and 2 made around $2,500 each for the year. With lower monthly payments and better control of turnovers, I should be able to increase their profits next year.
Property 3. Even with having to buy Eugene a new refrigerator, Property 3 has a hard time NOT making money. Thomas somehow found a way to pay me $550 all in one shot, and I have no idea how he's doing it. I mean seriously, the guy is struggling just to have $10 a week to eat, so how is he coming up with all this money?? Ah well, I'll chock it up to all the good luck I'm having with that place. I mean, I spent a grand total of $547.65 in repairs for the ENTIRE year. That's just crazy! The people there keep to themselves and don't bother me, and I definitely appreciate it. I'm not sure what the endgame is for that place, but I'm gonna sit back and enjoy the ride until the wheels come off.
With Property 4, I really have some work to do. Alfonso and I had to go there twice for that damned water heater. I also had to call the refrigerator repairman to fix a recurring problem where the ice builds up and blocks the freezer's cold air path to the refrigerator. Three days ago, Latisha texted me that the washer/dryer is now not working. Fuck. I made a mistake trusting those used appliance guys in Utica, and now I'll have to pay for it. I'll probably have to end up buying her a new refrigerator and a new hot water tank. And I'll do it because Latisha is an awesome tenant. She's the first African-American tenant to pay me on time for more than two months. And she's had to endure countless issues thanks to those defective appliances, yet she still has a good attitude about anything. Property 4 was my big purchase of 2016, and I'm not too happy with the purchase. But if it has any chance of succeeding, I need to keep a tenant like Latisha for stable rental income. So chances are that I'll be in the red at the beginning of 2017 for Property 4, but it'll be worth it in the end.
And that's that. 2016 is over and 2017 will be here in a short while. I made $14,000 in rental income, and I'm expecting to triple that when I purchase my fifth property next year. The one that allows me to retire. 2016 was good, and I learned how to be a better landlord and property manager. I made some mistakes, but I learned from them. The proof is in the profits, as this was the first year I made respectable profits. A toast to 2017, with more lessons to learn and money to make on the horizon.
P.S.: I like the way I did this post, and I plan to do all my year end earnings reports like this. It becomes easier to do my taxes, as most of my estimates are right here! All I have to do is add in my W2s from my paycheck jobs and I'll be all set. And I definitely need to do my taxes early, as Tax Guy Matt charged me an arm and a leg for filing my 2015 taxes late.
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