Property X
Apt 1- VACANT
Apt 2 – Consuela: $600
Total Rents Received: $600
Property Expenses: $60 (Alfonso Maintenance Fee)
National Grid: $0 of $532.56 paid (March: $163.70)
Total Profit for Anita: $540 [2018: $434.35]
I can’t believe my mom Anita is taking so long to get the downstairs apartment renovated when there’s so much interest in that place. I seriously think she could get $850 per month, a full $150 more than she was getting before. As I said in February’s earnings post, Anita’s taxes are gonna go up thanks to the sidewalk work that the city did. The total cost came to me in a letter from the city: a massive $12,054 bill. Since she’s gonna get that put onto the taxes, that’s be split up into 10 annual payments at 7% interest. Not sure how much that comes out to a year, but I guarantee that she’ll regret not taking Alfonso’s offer of $5,000 to do the same job. Either way, an extra $150 a month would definitely help.
Property 1
Apt 1 – Denise: $725 (back rent - February)
Apt 2 - Sebastian: $875
Total Rents Received: $1,600
Mortgage: $840
National Grid: $468.83 paid (March: $126) [2018: $224.19]
Property Expenses: $606.92 (New stove, screen door latch replacement, and eviction warrant)
Total Profit: -$315.75 [2018: $282.81]
Denise paid the back rent on the 1st (actually it was the 4th, but I gave her credit), but then had trouble coming up with the March 15th payment. Once she missed the deadline, I filed for a warrant to get her ass out by the end of March. Denise begged me for more time but I told her that “the owner” can’t continue this tenancy based on the late payments and having to file an eviction on her just to pay rent. The funny thing was that she wanted to use me as a reference for other apartments and I told her that it’s probably not a good idea. Her response was this:
“Why not? It’s not like we were bad tenants.”
When someone’s tenancy starts with an eviction and they say “we weren’t bad tenants”, you… I mean, how can I argue with a mind like that? So I just said “yeah, I understand”, and saved myself from an argument that would have gone nowhere. Hopefully she leaves without incident and I can get that place rented out before the end of April. That would seriously help me out and make it easier to leave in May to hang in NYC for the whole month. Oh… and one more thing about Property #1:
For most people, having property value decrease by $14,000 would be a bad thing. But for a guy paying $840 a month for a mortgage with less than $50,000 remaining, a decrease in value puts a smile on my face. It means that my taxes go down, which means my monthly payments will go down. Adding to that, my 2009 sidewalk deal with the city ends in April, which means that the payments will be even lower. If I can get a tenant paying at least $725 in that apartment, this property has the potential to make me about $600 a month. That’s more than double my monthly average of 2017, and more than 6x more than I made in 2018. Fingers crossed!
Property 2
Apt 1 – Brenda: $765L
Apt 2 - Edward and Gabby: $760
Total Received: $1,525
Mortgage: $755
Property Expenses: $85 (Sewage cleanup, washing machine fix, gas leak call)
Total Profit: $695 [2018: $756]
Brenda paid late but I gave her a one-time pass. I really have to stop doing shit like that, especially when I have to deal with her annoying mother. Brenda’s mom called me to complain about beef between the upstairs tenants and her daughter. Evidently, Brenda mistakenly left the garbage can too close to the back steps, so Gabby took it and put it right at her front door. I told her that I usually don’t get in between issues between tenants, but decided to talk to Edward anyway. Calmer heads prevailed and everything ended without incident. I did find it interesting that Brenda’s car got totaled, and that was why she had some financial issues. Her dumbass kept her car parked on that narrow street even after she’d been told several times to park in Property 2’s parking lot. Whatever. As long as they keep to themselves, they should be fine. And if not, either of them can move out and I’ll still be able to rent out their apartments with minor renovations.
I also started doing apartment inspections with Property #2. Brenda’s apartment was fine, but Edward and Gabby had some kind of pink hair-dye staining the bathroom floor. While I was glad to finally do what should be routine inspections, I only plan to do it when I’m suspicious of a tenancy. After inspections, both tenants bothered me about repairs that they would have otherwise forgotten about, so I’d prefer to stay out of sight and out of mind unless I feel that something’s up.
Property 3
Apt 1 – Danny and Maria: $710
Apt 2 – Emily: $670
Apt 3 – Rory: $600
Apt 4 – VACANT
Total Rents Received: $1,980
Mortgage: $767
Property Expenses: $668.21 (Renovation Materials for Apartment 4)
National Grid: $1,253.78 of $1,253.78 paid (March: $438.79) [2018: $557.73]
Water Bill: $200 of $1,600.75 paid ($1,400.75 remaining)
Total Profit: -$908.99 [2018: -$765.06]
I had an issue. Sebastian of Property #1 paid his rent early, which gave me an early opportunity to pay down my massive debts. But then I remembered that I’m an investor, and investors have to think about long term money vs short term debts. So I took that money and bought the materials needed to finish work on the vacant apartment. I mean, why spend almost $800 on a single bill when I can spend it on finishing an apartment that, once rented, can pay many bills? It was the first smart financial move I’ve made in a while, and hopefully I can get Apartment 4 rented out in April. I’m getting tired of writing the word “VACANT” next to that apartment.
Property 4
Tenant Latisha: $900
Mortgage: $608
Property Expenses: $0
Water Bill: $35.90 (January’s Water Bill)
Total Profit: $256.10 [2018: $900]
Chillin’. Always chillin.
Property 5
Apt 1 – NEW TENANT – Niah: $1,090 ($650 sec dep + $440 prorated rent)
Apt 2 – Rich: $500
Apt 3 – Mickey and Alex: $765
Apt 4 – VACANT
Total Rents Received: $2,355
Mortgage: $1,048
Property Expenses: $2,924.38 (Kitchen cabinets, Final Attic payment to Alfonso,
National Grid: $919.75 paid (March: $246.56)
Application Fees: $20
Total Profit: -$2,517.13
Alfonso really cleaned up in March, thanks to Property 5. He fixed a bathroom light in Apartment 1, a faucet in Apartment 2, and a drain in Apartment 3. He also re-wired the rest of the basement plumbing so that all the water lines are finally separate. But the best thing is that he finished the attic apartment contract, and I’m so glad that the main attic work is finally done. Over the next few months I’ll buy what’s needed to truly make it a finished and furnished apartment, but there’s seriously no rush. With all the bills I have to pay, I can take my time with the luxuries.
Ever since November, I had major trouble getting Apartment 1 rented out. It wasn’t until a prospective tenant with real estate experience came in to take a look at the place that I got some very good advice. Once I knew she wasn’t really interested, I asked her how she would advertise the apartment. She said that the best way to advertise the small two-bedroom apartment is as a one-bedroom with a den or office room (instead of it being a second bedroom). So instead of getting people looking for a big two-bedroom and saying it’s too small, I can now get people looking for a one-bedroom and saying “Wow, an extra room!” The strategy worked, and within days I had three good applications. I ended up choosing Niah, a single mother who makes good money. I mostly chose her because she’s a hard worker (works a ton of overtime), and her landlord loved her so much that she was actually the person to drop off Niah’s application. And to top it off, she paid for the second half of March and the security deposit. This means I don’t have to wait until May for her next rent payment.
Net Real Estate Profit for March 2019: -$2,790.77 [2018: $1,178.17]
In February, I said that the goal for March was to finish the goddamned attic apartment, and I did it. I paid Alfonso off and got all the apartment materials paid for. It felt good, but what didn’t feel good was how I got the money. I was doing good making payments to my business line of credit (LOC), but I had to take everything out again to help pay all my debts... especially those MASSIVE National Grid payments. This puts me further into debt as I retire from paycheck work at the end of April, and that made me feel like shit. I really didn’t want to take the money out, but I honestly had no choice. This is one of the bad things about doing business all by myself: I have no one to help me in times like these. Ah well, hopefully it’ll all be worth it.
April is my last month working at any job. At the end of this month, I’m planning to stay in NYC for a month at Brooklyn Mike’s place. Before I go, it’d be great to get Property 5’s Apartment 4 and Property 1’s Apartment 1. Denise gets evicted from the latter tomorrow, and I’m hoping that idiot keeps the place in good enough condition so that some minor cleaning will get the place rental ready. If I can get both places rented out, it will send me off to paycheck retirement with a little more to celebrate about.
Apt 1- VACANT
Apt 2 – Consuela: $600
Total Rents Received: $600
Property Expenses: $60 (Alfonso Maintenance Fee)
National Grid: $0 of $532.56 paid (March: $163.70)
Total Profit for Anita: $540 [2018: $434.35]
I can’t believe my mom Anita is taking so long to get the downstairs apartment renovated when there’s so much interest in that place. I seriously think she could get $850 per month, a full $150 more than she was getting before. As I said in February’s earnings post, Anita’s taxes are gonna go up thanks to the sidewalk work that the city did. The total cost came to me in a letter from the city: a massive $12,054 bill. Since she’s gonna get that put onto the taxes, that’s be split up into 10 annual payments at 7% interest. Not sure how much that comes out to a year, but I guarantee that she’ll regret not taking Alfonso’s offer of $5,000 to do the same job. Either way, an extra $150 a month would definitely help.
Property 1
Apt 1 – Denise: $725 (back rent - February)
Apt 2 - Sebastian: $875
Total Rents Received: $1,600
Mortgage: $840
National Grid: $468.83 paid (March: $126) [2018: $224.19]
Property Expenses: $606.92 (New stove, screen door latch replacement, and eviction warrant)
Total Profit: -$315.75 [2018: $282.81]
Denise paid the back rent on the 1st (actually it was the 4th, but I gave her credit), but then had trouble coming up with the March 15th payment. Once she missed the deadline, I filed for a warrant to get her ass out by the end of March. Denise begged me for more time but I told her that “the owner” can’t continue this tenancy based on the late payments and having to file an eviction on her just to pay rent. The funny thing was that she wanted to use me as a reference for other apartments and I told her that it’s probably not a good idea. Her response was this:
“Why not? It’s not like we were bad tenants.”
When someone’s tenancy starts with an eviction and they say “we weren’t bad tenants”, you… I mean, how can I argue with a mind like that? So I just said “yeah, I understand”, and saved myself from an argument that would have gone nowhere. Hopefully she leaves without incident and I can get that place rented out before the end of April. That would seriously help me out and make it easier to leave in May to hang in NYC for the whole month. Oh… and one more thing about Property #1:
 |
| Lower assessment + Lower taxes = Lower monthly payments |
For most people, having property value decrease by $14,000 would be a bad thing. But for a guy paying $840 a month for a mortgage with less than $50,000 remaining, a decrease in value puts a smile on my face. It means that my taxes go down, which means my monthly payments will go down. Adding to that, my 2009 sidewalk deal with the city ends in April, which means that the payments will be even lower. If I can get a tenant paying at least $725 in that apartment, this property has the potential to make me about $600 a month. That’s more than double my monthly average of 2017, and more than 6x more than I made in 2018. Fingers crossed!
Property 2
Apt 1 – Brenda: $765L
Apt 2 - Edward and Gabby: $760
Total Received: $1,525
Mortgage: $755
Property Expenses: $85 (Sewage cleanup, washing machine fix, gas leak call)
Total Profit: $695 [2018: $756]
Brenda paid late but I gave her a one-time pass. I really have to stop doing shit like that, especially when I have to deal with her annoying mother. Brenda’s mom called me to complain about beef between the upstairs tenants and her daughter. Evidently, Brenda mistakenly left the garbage can too close to the back steps, so Gabby took it and put it right at her front door. I told her that I usually don’t get in between issues between tenants, but decided to talk to Edward anyway. Calmer heads prevailed and everything ended without incident. I did find it interesting that Brenda’s car got totaled, and that was why she had some financial issues. Her dumbass kept her car parked on that narrow street even after she’d been told several times to park in Property 2’s parking lot. Whatever. As long as they keep to themselves, they should be fine. And if not, either of them can move out and I’ll still be able to rent out their apartments with minor renovations.
I also started doing apartment inspections with Property #2. Brenda’s apartment was fine, but Edward and Gabby had some kind of pink hair-dye staining the bathroom floor. While I was glad to finally do what should be routine inspections, I only plan to do it when I’m suspicious of a tenancy. After inspections, both tenants bothered me about repairs that they would have otherwise forgotten about, so I’d prefer to stay out of sight and out of mind unless I feel that something’s up.
Property 3
Apt 1 – Danny and Maria: $710
Apt 2 – Emily: $670
Apt 3 – Rory: $600
Apt 4 – VACANT
Total Rents Received: $1,980
Mortgage: $767
Property Expenses: $668.21 (Renovation Materials for Apartment 4)
National Grid: $1,253.78 of $1,253.78 paid (March: $438.79) [2018: $557.73]
Water Bill: $200 of $1,600.75 paid ($1,400.75 remaining)
Total Profit: -$908.99 [2018: -$765.06]
I had an issue. Sebastian of Property #1 paid his rent early, which gave me an early opportunity to pay down my massive debts. But then I remembered that I’m an investor, and investors have to think about long term money vs short term debts. So I took that money and bought the materials needed to finish work on the vacant apartment. I mean, why spend almost $800 on a single bill when I can spend it on finishing an apartment that, once rented, can pay many bills? It was the first smart financial move I’ve made in a while, and hopefully I can get Apartment 4 rented out in April. I’m getting tired of writing the word “VACANT” next to that apartment.
Property 4
Tenant Latisha: $900
Mortgage: $608
Property Expenses: $0
Water Bill: $35.90 (January’s Water Bill)
Total Profit: $256.10 [2018: $900]
Chillin’. Always chillin.
Property 5
Apt 1 – NEW TENANT – Niah: $1,090 ($650 sec dep + $440 prorated rent)
Apt 2 – Rich: $500
Apt 3 – Mickey and Alex: $765
Apt 4 – VACANT
Total Rents Received: $2,355
Mortgage: $1,048
Property Expenses: $2,924.38 (Kitchen cabinets, Final Attic payment to Alfonso,
National Grid: $919.75 paid (March: $246.56)
Application Fees: $20
Total Profit: -$2,517.13
Alfonso really cleaned up in March, thanks to Property 5. He fixed a bathroom light in Apartment 1, a faucet in Apartment 2, and a drain in Apartment 3. He also re-wired the rest of the basement plumbing so that all the water lines are finally separate. But the best thing is that he finished the attic apartment contract, and I’m so glad that the main attic work is finally done. Over the next few months I’ll buy what’s needed to truly make it a finished and furnished apartment, but there’s seriously no rush. With all the bills I have to pay, I can take my time with the luxuries.
Ever since November, I had major trouble getting Apartment 1 rented out. It wasn’t until a prospective tenant with real estate experience came in to take a look at the place that I got some very good advice. Once I knew she wasn’t really interested, I asked her how she would advertise the apartment. She said that the best way to advertise the small two-bedroom apartment is as a one-bedroom with a den or office room (instead of it being a second bedroom). So instead of getting people looking for a big two-bedroom and saying it’s too small, I can now get people looking for a one-bedroom and saying “Wow, an extra room!” The strategy worked, and within days I had three good applications. I ended up choosing Niah, a single mother who makes good money. I mostly chose her because she’s a hard worker (works a ton of overtime), and her landlord loved her so much that she was actually the person to drop off Niah’s application. And to top it off, she paid for the second half of March and the security deposit. This means I don’t have to wait until May for her next rent payment.
Net Real Estate Profit for March 2019: -$2,790.77 [2018: $1,178.17]
In February, I said that the goal for March was to finish the goddamned attic apartment, and I did it. I paid Alfonso off and got all the apartment materials paid for. It felt good, but what didn’t feel good was how I got the money. I was doing good making payments to my business line of credit (LOC), but I had to take everything out again to help pay all my debts... especially those MASSIVE National Grid payments. This puts me further into debt as I retire from paycheck work at the end of April, and that made me feel like shit. I really didn’t want to take the money out, but I honestly had no choice. This is one of the bad things about doing business all by myself: I have no one to help me in times like these. Ah well, hopefully it’ll all be worth it.
April is my last month working at any job. At the end of this month, I’m planning to stay in NYC for a month at Brooklyn Mike’s place. Before I go, it’d be great to get Property 5’s Apartment 4 and Property 1’s Apartment 1. Denise gets evicted from the latter tomorrow, and I’m hoping that idiot keeps the place in good enough condition so that some minor cleaning will get the place rental ready. If I can get both places rented out, it will send me off to paycheck retirement with a little more to celebrate about.
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