June 2017 Financial Results

Recently I wrote a post about my adventures of purchasing my first multi-family investment property. Owning rental property has been an outstanding investment of my money thus far. I’m expecting to make a 17-18% return on investment this year and the best part about it is I’m not having to perform much of any work to earn it. Sure, I’ve had to write a few checks and field a few phone calls from my property manager but outside of that, things have been pretty much smooth sailing.

It occurred to me that it may be useful to document the financial results of my real estate investments as we go. So below you’ll find a breakdown of income earned and expenses paid for the month. As you can see, the month of June was a somewhat average month. When I say average I mean that it was very much in line with my estimates of income and expenses prior to purchase.

We welcomed a new tenant in apartment 7 which means all eight units are currently rented. I offered an incentive with my property manager to pay an additional $50 for each month that all units are rented, so this month he earned $300 as opposed to $250.

FYI, the green rows indicate that the tenant paid their rent on or before the 6th of the month, which is the grace period. The tenant in apartment 3 did not pay his rent until the 23rd so he was charged a $50 late fee.

Income
Date Income Category Amount Description
06/06/17 Rent

$400.00

Apt 1 rent
06/03/17 Rent

$380.00

Apt 2 rent
06/23/17 Rent

$450.00

Apt 3 rent (+ $50 late fee)
06/03/17 Rent

$400.00

Apt 4 rent
06/23/17 Rent

$650.00

Apt 5 rent
06/09/17 Rent

$350.00

Apt 6 rent
06/03/17 Deposit

$150.00

Apt 7 security deposit
06/09/17 Rent

$350.00

Apt 7 rent
06/04/17 Rent

$375.00

Apt 8 rent
Total Income

$3,505.00

Expenses
Date Expense Category Amount Description
06/03/17 Utilities

$158.75

Water Bill
06/13/17 Utilities

$199.10

Light Bill
06/21/17 Repairs

$40.00

Apt 3 & Apt 6 – repair toilet flappers
06/21/17 Supplies

$45.31

Apt 3 & Apt 6 – toilet flush valve & flapper
06/29/17 Management Fees

$300.00

Property Management (+$50 all units filled)
06/30/17 Escrow

$500.00

Escrow – taxes & insurance
06/30/17 Escrow

$300.00

Escrow – capital expenditures
06/01/2017 Mortgage

$400.00

Mortgage Payment
Total Expenses

$1,943.16

Monthly Cash Flow

$1,561.84

We had two minor repairs with the toilets in apartments 3 & 6. After all expenses for the month we ended with a cash flow of $1,561.84. This was all done with a assistance of property manager so I didn’t have to fix any toilets or even visit the property. This is what I call passive investing or letting my money work for me. My goal is to use the cash flow to fund additional properties and eventually I’ll be able to spend more of day days like this.

Leave a Reply

Your email address will not be published. Required fields are marked *