Property X
Apt 1- Black Family: $700L
Apt 2 – Consuela: $600
Total Rents Received: $1300
Repair Costs: $309.17 (Maintenance Fee [120], Oven repair [145.30], Furnace Service call [30], Door Knob [13.87])
Water Bill: $96 (Jan. 2017 - 103.95)
Taxes: $847
Total Profit for Anita: $47.83 (Jan. 2017 - $316.89)
The mother of the family downstairs got injured and is now out of work, so she's trying to get on Public Assistance until she gets better. Normally I'd be afraid that she'd turn into a welfare bum like so many others, but she doesn't seem the type. According to Alfonso, she's the kind of person that likes to work... I like that. Anyway, while she waits for her assistance to kick in, she's paying out of her savings.The upstairs tenant had a weird issue where both the hot and cold water faucet spit out hot water. It turns out that there's a cross in the pipes somewhere, but it's not an issue that needs concern right now. Alfonso fixed it temporarily, but I'd like to get this issue solved before next winter comes along.
Anita decided to start paying her yearly taxes early, so she will be combining her money with the rental income to pay off taxes for the year by February's end. Inspired by her forward thinking, I wanted to see if I could do the same for my only property with no mortgage... Property 4. Unfortunately, since it's location is not in city limits, Property 4's taxes can't be paid in advance. Sucks.
Property 1
Apt 1 – Dharma and Family: $525
Apt 2 - Belle and Sebastian: $875
Total Rents Received: $1400
Mortgage: $833
National Grid: $189.91 (Jan. 2017: $184.38)
Property Expenses: $0
Water Bill: $96
Total Profit: $281.09 (Jan. 2017 - 292.04)
Nothing new... hate living below the Nepali idiots, Sebastian's doing good, and the rental income is still not enough. I'll talk about that last one in detail on a later post.
Property 2
Apt 1 - Nicholas 2: $760 ($10 Pet Fee Begins)
Apt 2 - Edward and Gabby: $750
Total Rents Received: $1,510
Mortgage: $754
Property Expenses: $40 (attic window glass replacement)
Water Bill: $96
Total Profit: $620 (Jan. 2017: -$157.65)
Wanna know how I know Edward's a lowkey asshole? Here's a text he sent me in January:
"Hey just noticed either there is no attic window or it's wide open... I haven't ever been up there so that's curious. And I'm sure that shouldn't be open for multiple reasons no?"
Even through the words on text, I still get the douche chills up my spine... especially that last line. Alfonso got a new frame for the broken window and reinstalled it, but this little incident really put Edward on my radar. And if one thinks that all he asked was for me to check out an issue with the attic window, don't be a landlord. Gotta be able to read between the lines and see that he's likely to become just as much of a pain in the ass as Gianna was. And he has the same attitude, but it's subtle. I definitely have to watch out for his nagging ass.
Property 3
Apt 1 - Chucky: $435
Apt 2 – Toby: $660
Apt 3 – Rory: $585
Apt 4 - Taniqua and Eugene: $585 ($35 LATE FEE)
Total Rents Received: $2,265
Mortgage: $882
Property Expenses: $90 (Eviction filing costs)
National Grid: $444.75 (Jan. 2017: $402.52)
Water Bill: $164.78 (Jan. 2017: $192.68)
Total Profit: $683.47 (Jan. 2017: $562.85)
I knew it! I knew those motherfuckers Eugene and Taniqua were gonna be late again, and they finally proved me right. And hey, it's not like I was rooting against them or anything... in fact, I rather liked them. But the warning signs were unmistakable, so he eventually had to play his part and miss the deadline. The truth is that I always had to remind him that rent is due on the 6th, and I was getting tired of it. So I decided not to remind him in January and see if he could be an adult and pay his bills like a man. After not hearing from him and the deadline had past, I filed an eviction. In court, he pulled me aside to apologize for not getting back to me and promised to pay what he owed and be out by the end of February. The judge agreed to the deal, and he paid what he owed plus the late fee. It feels good to finally get rid of the one tenant that’s been consistently late for almost three years now. Seriously dude, enough’s enough.
This isn’t really an update, but I gotta say that I really like having Toby as my tenant. The guy paid January’s rent in December because he was afraid he’d be late with all the holiday stuff going on. I swear, with the next vacancy I’m looking for a flaming homo.
Property 4
Tenant Latisha: $900
Property Expenses: $0
Water Bill: $30
Taxes: $1,312 (Jan. 2017: $1,259)
Total Profit: -$442 (Jan. 2017: -$1,127.65)
I will always take a loss in January due to the taxes that have to be paid that month. All things considered, a loss of $442 is the best case scenario.
Net Real Estate Profit for January 2018: $1,142.56
Despite the repairs and taxes and water bills, I still pulled a profit over $1,000 during a major winter month. If I’m not mistaken, that’s the highest rental income I’ve ever made in January and it feels good. It actually feels like I’m doing things right this time around.
I didn’t want to deal with turnovers but it was inevitable with Eugene and Taniqua. And I really like it when my plan of getting rid of tenants works in my favor.
Once I see the tenants are no longer reliable, I wait until they pay that month’s rent. Afterwards, I give them a 30-day notice and let them know that they have to leave by the end of the following month. In that following month, I use their security deposit to cover rent while they use their jobs or whatever income to build up as much as they can. At the end of the following month, they leave. If they try to stay, I evict them for staying past the 30 day notice. Unlike evictions for non-payment, there’s literally no excuse they can come up with when being evicted for staying past the deadline. As long as I prove I sent the 30 day notice on time, they have to leave. Thus, the whole ordeal ends up costing just $90 for the eviction filing fee.
The only problem arises when a tenant wants their security deposit back and finds a place before the end of the first month. For this reason, I usually wait until the last 2 weeks of the month to let them know they’ve gotta go. When given the option of scrambling to find a place in two weeks or stay in the property rent-free while looking for a place and building up some income, it’s usually the latter. Forcing them to scramble makes them angry, and angry tenants leave a mess while breaking shit. By doing it my way, they have more time to find a place and actually feel grateful that I’m giving them a “free” month, so they usually leave the place in good enough condition where all I have to do is throw out garbage, clean, paint, and then look for the next tenant. Only once has someone chosen the former, and that was because I gave them the 30-day notice at the end of the first week.
There’s not much insight into January other than that I hope this is a sign of things to come. I want my rental income to cover normal expenses while taking a fairly decent profit. Winter is always gonna be slow, so any profit over $1,000 is excellent. February is next and my eyes are set on Eugene and Taniqua. I haven’t been in that apartment in a while, so I’m not sure exactly what to expect when they leave. I doubt it’s gonna be trashed, so hopefully some paint and touch-ups will do the trick. Historically, February and March are the months when I pay the most in National Grid bills. So I'm hoping there aren't any major repairs so that I get another shot at $1,000 profit for February.
Apt 1- Black Family: $700L
Apt 2 – Consuela: $600
Total Rents Received: $1300
Repair Costs: $309.17 (Maintenance Fee [120], Oven repair [145.30], Furnace Service call [30], Door Knob [13.87])
Water Bill: $96 (Jan. 2017 - 103.95)
Taxes: $847
Total Profit for Anita: $47.83 (Jan. 2017 - $316.89)
The mother of the family downstairs got injured and is now out of work, so she's trying to get on Public Assistance until she gets better. Normally I'd be afraid that she'd turn into a welfare bum like so many others, but she doesn't seem the type. According to Alfonso, she's the kind of person that likes to work... I like that. Anyway, while she waits for her assistance to kick in, she's paying out of her savings.The upstairs tenant had a weird issue where both the hot and cold water faucet spit out hot water. It turns out that there's a cross in the pipes somewhere, but it's not an issue that needs concern right now. Alfonso fixed it temporarily, but I'd like to get this issue solved before next winter comes along.
Anita decided to start paying her yearly taxes early, so she will be combining her money with the rental income to pay off taxes for the year by February's end. Inspired by her forward thinking, I wanted to see if I could do the same for my only property with no mortgage... Property 4. Unfortunately, since it's location is not in city limits, Property 4's taxes can't be paid in advance. Sucks.
Property 1
Apt 1 – Dharma and Family: $525
Apt 2 - Belle and Sebastian: $875
Total Rents Received: $1400
Mortgage: $833
National Grid: $189.91 (Jan. 2017: $184.38)
Property Expenses: $0
Water Bill: $96
Total Profit: $281.09 (Jan. 2017 - 292.04)
Nothing new... hate living below the Nepali idiots, Sebastian's doing good, and the rental income is still not enough. I'll talk about that last one in detail on a later post.
Property 2
Apt 1 - Nicholas 2: $760 ($10 Pet Fee Begins)
Apt 2 - Edward and Gabby: $750
Total Rents Received: $1,510
Mortgage: $754
Property Expenses: $40 (attic window glass replacement)
Water Bill: $96
Total Profit: $620 (Jan. 2017: -$157.65)
Wanna know how I know Edward's a lowkey asshole? Here's a text he sent me in January:
"Hey just noticed either there is no attic window or it's wide open... I haven't ever been up there so that's curious. And I'm sure that shouldn't be open for multiple reasons no?"
Even through the words on text, I still get the douche chills up my spine... especially that last line. Alfonso got a new frame for the broken window and reinstalled it, but this little incident really put Edward on my radar. And if one thinks that all he asked was for me to check out an issue with the attic window, don't be a landlord. Gotta be able to read between the lines and see that he's likely to become just as much of a pain in the ass as Gianna was. And he has the same attitude, but it's subtle. I definitely have to watch out for his nagging ass.
Property 3
Apt 1 - Chucky: $435
Apt 2 – Toby: $660
Apt 3 – Rory: $585
Apt 4 - Taniqua and Eugene: $585 ($35 LATE FEE)
Total Rents Received: $2,265
Mortgage: $882
Property Expenses: $90 (Eviction filing costs)
National Grid: $444.75 (Jan. 2017: $402.52)
Water Bill: $164.78 (Jan. 2017: $192.68)
Total Profit: $683.47 (Jan. 2017: $562.85)
I knew it! I knew those motherfuckers Eugene and Taniqua were gonna be late again, and they finally proved me right. And hey, it's not like I was rooting against them or anything... in fact, I rather liked them. But the warning signs were unmistakable, so he eventually had to play his part and miss the deadline. The truth is that I always had to remind him that rent is due on the 6th, and I was getting tired of it. So I decided not to remind him in January and see if he could be an adult and pay his bills like a man. After not hearing from him and the deadline had past, I filed an eviction. In court, he pulled me aside to apologize for not getting back to me and promised to pay what he owed and be out by the end of February. The judge agreed to the deal, and he paid what he owed plus the late fee. It feels good to finally get rid of the one tenant that’s been consistently late for almost three years now. Seriously dude, enough’s enough.
This isn’t really an update, but I gotta say that I really like having Toby as my tenant. The guy paid January’s rent in December because he was afraid he’d be late with all the holiday stuff going on. I swear, with the next vacancy I’m looking for a flaming homo.
Property 4
Tenant Latisha: $900
Property Expenses: $0
Water Bill: $30
Taxes: $1,312 (Jan. 2017: $1,259)
Total Profit: -$442 (Jan. 2017: -$1,127.65)
I will always take a loss in January due to the taxes that have to be paid that month. All things considered, a loss of $442 is the best case scenario.
Net Real Estate Profit for January 2018: $1,142.56
Despite the repairs and taxes and water bills, I still pulled a profit over $1,000 during a major winter month. If I’m not mistaken, that’s the highest rental income I’ve ever made in January and it feels good. It actually feels like I’m doing things right this time around.
I didn’t want to deal with turnovers but it was inevitable with Eugene and Taniqua. And I really like it when my plan of getting rid of tenants works in my favor.
Once I see the tenants are no longer reliable, I wait until they pay that month’s rent. Afterwards, I give them a 30-day notice and let them know that they have to leave by the end of the following month. In that following month, I use their security deposit to cover rent while they use their jobs or whatever income to build up as much as they can. At the end of the following month, they leave. If they try to stay, I evict them for staying past the 30 day notice. Unlike evictions for non-payment, there’s literally no excuse they can come up with when being evicted for staying past the deadline. As long as I prove I sent the 30 day notice on time, they have to leave. Thus, the whole ordeal ends up costing just $90 for the eviction filing fee.
The only problem arises when a tenant wants their security deposit back and finds a place before the end of the first month. For this reason, I usually wait until the last 2 weeks of the month to let them know they’ve gotta go. When given the option of scrambling to find a place in two weeks or stay in the property rent-free while looking for a place and building up some income, it’s usually the latter. Forcing them to scramble makes them angry, and angry tenants leave a mess while breaking shit. By doing it my way, they have more time to find a place and actually feel grateful that I’m giving them a “free” month, so they usually leave the place in good enough condition where all I have to do is throw out garbage, clean, paint, and then look for the next tenant. Only once has someone chosen the former, and that was because I gave them the 30-day notice at the end of the first week.
There’s not much insight into January other than that I hope this is a sign of things to come. I want my rental income to cover normal expenses while taking a fairly decent profit. Winter is always gonna be slow, so any profit over $1,000 is excellent. February is next and my eyes are set on Eugene and Taniqua. I haven’t been in that apartment in a while, so I’m not sure exactly what to expect when they leave. I doubt it’s gonna be trashed, so hopefully some paint and touch-ups will do the trick. Historically, February and March are the months when I pay the most in National Grid bills. So I'm hoping there aren't any major repairs so that I get another shot at $1,000 profit for February.
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