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: $5,000 – Ahh, if only that was all profit. Now for the expenses. (One tenant payed a $25 late fee, hence the increase over last month)
- Mortgages / Loans: $2,913
- This number should remain the same throughout the year.
- Repairs: $140 – clogged sewer drain
- Utilities: $0
- Insurance: $0
- Taxes: $630 – county taxes
Monthly Cash-flow: $1,317 (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 (This number actually increases a tiny bit each month, but I don’t get monthly statements showing the principle payment for all my loans, thus I will calculate this amount once per year)
Total April 2017 Profit: $2,049 (Back in black)
Total 2017 Profit: $6,588
Monthly Average Profit: $1,647 – This is an important number, as it will smooth out the fluctuations caused by insurance bills, taxes, repairs, etc.
Overall, this month had little to report. I paid the county taxes for my properties without escrow accounts, and I had a clogged sewer drain. This created a foul smelling back yard, but otherwise was quickly and easily fixed after just a few phone calls.