My real estate portfolio currently consists of 6 rental units. The monthly reports 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: $2,913
- This number is slightly different then my December total due to adjustments to my escrow payments. This happens each year depending on whether you have a shortage or overage in the escrow account. These adjustments are determined by the mortgage company.
- Repairs: $0
- Utilities: $1,234
- Each property received the annual trash bill. I receive a 2% discount for paying in full, also paying in full affords me some nice time savings. If I paid quarterly, I’d receive 18 additional bills in the mail, which would result in 18 additional payments. 6 total payments and a discount is much better, although its a bit rough on the cash flow this month.
Monthly Cash-flow: $832 (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: $732
Total January 2017 Profit: $1,564
Overall, January was a profitable month. I didn’t have any tax or insurance expenses (some properties don’t have escrow), but I did have to pay $205.80 per property to cover the annual trash bill.