My real estate portfolio currently consists of 6 rental units. The monthly reports will highlight the income and expenses associated with each property as well as the total monthly profits or losses.
Total Income: $4,975 – Ahh, if only that was all profit. Now for the expenses.
- Mortgages / Loans: $2,878
- Repairs: $1,015
Monthly Cash-flow: $1,082 (this is a pre-tax number)
But wait, there is some more hidden profit. Where you ask? The portion of the loans applied to the principal is a hidden profit, to be realized upon selling the property.
Hidden Profit: $566
Total December 2016 Profit: $1,648
Overall, December was a profitable month. I didn’t have any tax or insurance expenses (some properties don’t have escrow), I also didn’t owe any utilities. I only pay for the trash, which I pay for the year each January, the tenants cover all other utilities. The repair bill was a bit high, however the lions share of those expenses was due to a $600 bill to have a tree trimmed back away from House 6. Unfortunately, the tree is growing wildly through the fence row of a neighboring property, this tree had grown onto my roof, and would surely soon begin causing leaks, thus I had is cut back to the property line. This tree will annoy me again in the future.