Property X
Apt 1- Black Family: $700
Apt 2 – Consuela: $600
Total Rents Received: $1,300
Property Expenses: $151.48 ($120 Maintenance Fee + $16.48 Vent Cap + $15 Lawn Mowing)
Total Profit for Anita: $1,148.52 (2017: $979.77)
I got a letter from the city of Smalltown stating that they're condemning Property X's sidewalk and it needs to be replaced. Most of the time it's a scam that cities does to generate more money from property taxes, especially on corner properties. They see a couple defects on the sidewalk, label it condemned, and then offer to repair the entire sidewalk and put the cost on the taxes. For most investors, they'd rather pay the money through the taxes than out of pocket. But this was kinda my fault, as the sidewalk was damaged a few years ago when the people who installed the concrete stairs put weight on the corner sidewalk and shifted it. I should have said something then but it didn't seem like a big deal at the time. My bad. The price is a hefty $10,000 to replace the entire sidewalk, so I'll see if I can find someone to do it cheap before the June 29th deadline. I see the city is doing that for all the properties on that street, so that'd be a nice chunk of extra money that the city will get to misspend on godknowswhat.
Property 1
Apt 1 – Dharma and Family: $525
Apt 2 - Belle and Sebastian: $875
Total Rents Received: $1,400
Mortgage: $840 (up $7)
National Grid: $232.49 (2017: $177.40)
Property Expenses: $0
Total Profit: $327.51 (2017: $297.96)
My living situation got a lot better in May. After the Nepalis had that same kid running around one afternoon, I complained to Naresh. He said that they will be moving out of state in October, and are willing to pay more money to compensate for my trouble. I told him that giving me more money won't solve my problem and that they may not make it til October. Ever since then, peace and quiet. No more kid running around. If they keep this up, I'll have no problems letting them stay until October. Naresh also wants to move back into the apartment once they leave, which is fine with me. But I'll definitely be raising the rent to at least $600 in November, no matter who ends up in the apartment. $525 for a two bedroom is just ridiculous now, especially now that Property 5 is mine. Once that attic apartment is finished, there's no reason to keep their rent low.
Oh, and I really don't like the fact that my payment went up $7. $840 on a $49,000 mortgage is just way too high, so I wanna take a closer look at the taxes and insurance in June.
Property 2
Apt 1 - Nicholas 2: $795 ($35 LATE FEE)
Apt 2 - Edward and Gabby: $750L
Total Rents Received: $1,545
Mortgage: $754
Property Expenses: $0
Total Profit: $791 ($2017: $653.95)
Edward called me while I was on vacation to tell me that he lost his job and wouldn't be able to pay rent until he got another job. He asked if there was anything he could do to avoid an eviction filing, and I told him no. An hour later, the rent was paid. I was very proud of myself for no longer offering payment plans for people who are down on their luck. You know why? Because a good tenant who gets down on his/her luck will have savings to cover at least two months rent. They don't complain to the landlord that they don't have money with no plan to pay the rent. So that made me happy enough to forego the late fee. Nicholas 2, however, was a pain in the ass. He kept me waiting about a half hour at the property before he came over with the $795. What bothered me was that he didn't seem too concerned. If this becomes a continued trend, I'll have to throw his dumb ass out.
Property 3
Apt 1 – Chucky: $435 (LAST MONTH)
Apt 2 – NEW TENANT – Emily: $1,310
Apt 3 – Rory: $600
Apt 4 – Josh: $0 (Already paid in advance)
Total Rents Received: $2,345
Mortgage: $882
Property Expenses: $379.57 (Apt 1 renovations + $100 fee to Al for finding Emily)
National Grid: $370.45 (2017: $440.55)
Total Profit: $712.98 (2017: -$631)
Thanks to my new tenant, Emily, I made a decent profit on Property 3 in May. She wanted the apartment when it was available back in April, but wasn't going to move in until June. So it didn't make sense for her to pay an extra month's rent when she wasn't going to be there. When she saw the place was still available in May, she called and got the place after passing my background check. I like her, but there are three problems. The first is that she's 20. I don't like young tenants. The second is that she only goes to school, so rent is paid through some kind of financial aid. I don't like it when tenants don't work. And lastly, she moved in with two dogs when she told me she would only have one. I don't like liars. To make matters worse overall, Property 3 is getting way too crowded with dogs. Josh has one. Rory has two. Add Emily and that's 5 dogs in a small 4-unit building! I'll make sure to do my apartment inspections in September and, if I see any issues with their dog ownership (dog crap on floor, urine smell, etc.), I'll give that person a 30-day notice and make sure the next tenant doesn't have dogs at all.
Property 4
Tenant Latisha: $900
Property Expenses: $1.60 (Water spout handle)
Total Profit: $898.40 (2017: $854.19)
Latisha called me to say that the new insurance company sent letters to the property, which I never understand. I mean, why send notices intended for the owner to the RENTAL property?? She said that I could pick them up or she can give it to me when she gets to work since she's been transferred to the same bank that I do security in. There is nothing worse than a tenant seeing me dressed like an idiot, so I elected to pick it up at the property. With she and I now working at the same job, it's becoming even more clear that I have to leave that place by the end of the year.
Lawn Mowing: $140
Net Real Estate Profit for May 2018: $2,589.89 (2017: $1,045.10)
Even though May was a horrible month for me personally (family stuff), the real estate game is still going good. I was able to make a profit on Property #3 thanks to renting out to Emily and Chucky's nephew paying his final month's rent. What's sad is that, even with the $2,500 profit, I still ended the month broke thanks to my father Alan's expenses. Nevertheless, I'm happy to see how I'm handling the turnovers. But June is gonna be a different month.
May was just the beginning of renovations for Chucky's old apartment, so June is when the real expenses take place. Looking at costs so far, there is NO WAY I'm making profit for all the properties in June... even with the free money coming in from Properties #4 and #5 (month before the mortgage starts is considered free money since there's rent collection with no mortgage to pay). And should I go through with my plan to renovate Property 5's apartments this year, I probably won't be making profits until November!
I know it'll suck to end each month in the negative, but it's all for a good cause. If this is gonna be my last year doing paycheck work, then this will be my last chance to get all the renovations done with a safety net. As much as I like profit, I love stability much more. So if I end 2018 not making much but having 13 renovated apartments with low turnover costs, paycheck retirement will be that much sweeter.
Apt 1- Black Family: $700
Apt 2 – Consuela: $600
Total Rents Received: $1,300
Property Expenses: $151.48 ($120 Maintenance Fee + $16.48 Vent Cap + $15 Lawn Mowing)
Total Profit for Anita: $1,148.52 (2017: $979.77)
I got a letter from the city of Smalltown stating that they're condemning Property X's sidewalk and it needs to be replaced. Most of the time it's a scam that cities does to generate more money from property taxes, especially on corner properties. They see a couple defects on the sidewalk, label it condemned, and then offer to repair the entire sidewalk and put the cost on the taxes. For most investors, they'd rather pay the money through the taxes than out of pocket. But this was kinda my fault, as the sidewalk was damaged a few years ago when the people who installed the concrete stairs put weight on the corner sidewalk and shifted it. I should have said something then but it didn't seem like a big deal at the time. My bad. The price is a hefty $10,000 to replace the entire sidewalk, so I'll see if I can find someone to do it cheap before the June 29th deadline. I see the city is doing that for all the properties on that street, so that'd be a nice chunk of extra money that the city will get to misspend on godknowswhat.
Property 1
Apt 1 – Dharma and Family: $525
Apt 2 - Belle and Sebastian: $875
Total Rents Received: $1,400
Mortgage: $840 (up $7)
National Grid: $232.49 (2017: $177.40)
Property Expenses: $0
Total Profit: $327.51 (2017: $297.96)
My living situation got a lot better in May. After the Nepalis had that same kid running around one afternoon, I complained to Naresh. He said that they will be moving out of state in October, and are willing to pay more money to compensate for my trouble. I told him that giving me more money won't solve my problem and that they may not make it til October. Ever since then, peace and quiet. No more kid running around. If they keep this up, I'll have no problems letting them stay until October. Naresh also wants to move back into the apartment once they leave, which is fine with me. But I'll definitely be raising the rent to at least $600 in November, no matter who ends up in the apartment. $525 for a two bedroom is just ridiculous now, especially now that Property 5 is mine. Once that attic apartment is finished, there's no reason to keep their rent low.
Oh, and I really don't like the fact that my payment went up $7. $840 on a $49,000 mortgage is just way too high, so I wanna take a closer look at the taxes and insurance in June.
Property 2
Apt 1 - Nicholas 2: $795 ($35 LATE FEE)
Apt 2 - Edward and Gabby: $750L
Total Rents Received: $1,545
Mortgage: $754
Property Expenses: $0
Total Profit: $791 ($2017: $653.95)
Edward called me while I was on vacation to tell me that he lost his job and wouldn't be able to pay rent until he got another job. He asked if there was anything he could do to avoid an eviction filing, and I told him no. An hour later, the rent was paid. I was very proud of myself for no longer offering payment plans for people who are down on their luck. You know why? Because a good tenant who gets down on his/her luck will have savings to cover at least two months rent. They don't complain to the landlord that they don't have money with no plan to pay the rent. So that made me happy enough to forego the late fee. Nicholas 2, however, was a pain in the ass. He kept me waiting about a half hour at the property before he came over with the $795. What bothered me was that he didn't seem too concerned. If this becomes a continued trend, I'll have to throw his dumb ass out.
Property 3
Apt 1 – Chucky: $435 (LAST MONTH)
Apt 2 – NEW TENANT – Emily: $1,310
Apt 3 – Rory: $600
Apt 4 – Josh: $0 (Already paid in advance)
Total Rents Received: $2,345
Mortgage: $882
Property Expenses: $379.57 (Apt 1 renovations + $100 fee to Al for finding Emily)
National Grid: $370.45 (2017: $440.55)
Total Profit: $712.98 (2017: -$631)
Thanks to my new tenant, Emily, I made a decent profit on Property 3 in May. She wanted the apartment when it was available back in April, but wasn't going to move in until June. So it didn't make sense for her to pay an extra month's rent when she wasn't going to be there. When she saw the place was still available in May, she called and got the place after passing my background check. I like her, but there are three problems. The first is that she's 20. I don't like young tenants. The second is that she only goes to school, so rent is paid through some kind of financial aid. I don't like it when tenants don't work. And lastly, she moved in with two dogs when she told me she would only have one. I don't like liars. To make matters worse overall, Property 3 is getting way too crowded with dogs. Josh has one. Rory has two. Add Emily and that's 5 dogs in a small 4-unit building! I'll make sure to do my apartment inspections in September and, if I see any issues with their dog ownership (dog crap on floor, urine smell, etc.), I'll give that person a 30-day notice and make sure the next tenant doesn't have dogs at all.
Property 4
Tenant Latisha: $900
Property Expenses: $1.60 (Water spout handle)
Total Profit: $898.40 (2017: $854.19)
Latisha called me to say that the new insurance company sent letters to the property, which I never understand. I mean, why send notices intended for the owner to the RENTAL property?? She said that I could pick them up or she can give it to me when she gets to work since she's been transferred to the same bank that I do security in. There is nothing worse than a tenant seeing me dressed like an idiot, so I elected to pick it up at the property. With she and I now working at the same job, it's becoming even more clear that I have to leave that place by the end of the year.
Lawn Mowing: $140
Net Real Estate Profit for May 2018: $2,589.89 (2017: $1,045.10)
Even though May was a horrible month for me personally (family stuff), the real estate game is still going good. I was able to make a profit on Property #3 thanks to renting out to Emily and Chucky's nephew paying his final month's rent. What's sad is that, even with the $2,500 profit, I still ended the month broke thanks to my father Alan's expenses. Nevertheless, I'm happy to see how I'm handling the turnovers. But June is gonna be a different month.
May was just the beginning of renovations for Chucky's old apartment, so June is when the real expenses take place. Looking at costs so far, there is NO WAY I'm making profit for all the properties in June... even with the free money coming in from Properties #4 and #5 (month before the mortgage starts is considered free money since there's rent collection with no mortgage to pay). And should I go through with my plan to renovate Property 5's apartments this year, I probably won't be making profits until November!
I know it'll suck to end each month in the negative, but it's all for a good cause. If this is gonna be my last year doing paycheck work, then this will be my last chance to get all the renovations done with a safety net. As much as I like profit, I love stability much more. So if I end 2018 not making much but having 13 renovated apartments with low turnover costs, paycheck retirement will be that much sweeter.
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