Real Estate Income Report – June, July, Aug, Sept. 2017

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.

I haven’t issued a real estate report since May, mainly because I had grown lazy and stopped working on the blog.  Luckily, I’ve still been keeping track of my income and expenses, so I will attempt to get everyone up to speed and I promise to be more diligent with my reports in the future.  I also need to write up my experience purchasing house number 5 and 6.

Obviously, there is a lot to report since I have neglected these posts, however I have recently written about a few of my summer landlord experiences in a post entitled Leaky Toilets and Noise Complaints, Why I invest in real estate, so feel free to read up on my land-lording adventures if you haven’t already.

In other news, given the price appreciation in Lancaster, PA, I am considering selling some property.  I have a tenant who is potentially interested in buying but we are early in the process and there is nothing to report yet, other then its a possibility I’m looking into.  The idea of selling some property to eliminate my student loans, or further reduce my primary mortgage is too appealing not to at least consider.  I have experience evaluating a property to buy, but I’ve never sold any so I look forward to learning some new skills.

Another reason to sell, is that I’m maxing out my 403(b) account, along with my wife taking several months maternity leave will greatly reduce our taxable income, making the tax hit from selling a property slightly less painful.

Here are my numbers – I do not claim my math to be error free!

Total Income: June – 5,075, July – 4,950, August – 5,100, September – 5,075  (The variation is due to late fees, and I gave one tenant a break on their water bill in July b/c in the previous quarter the water heater had broken and a large amount of water had leaked into the basement.)

  • Mortgages / Loans: $2,913 ($11,652 for all four months)
    • This number should remain the same throughout the year.
  • Repairs: $5,582 (this is for all four months, and represents a porch that I paid to have painted, and replacing a furnace / AC unit, among other smaller issues)
  • Utilities: $0
  • Insurance: $1,437 (June)
  • Taxes: $1,719 (August)

Monthly Cash-flow: $-480 (4 month average) (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 (June) 807 (Jul, Aug, Sep. I increased rent by $75 and then added that as an extra principle payment to one property) (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 June -September 2017 Profit: $2,637 

Total 2017 Profit: $12,080

2017 Monthly Average Profit: $1,342 – This is an important number, as it will smooth out the fluctuations caused by                                                                         insurance bills, taxes, repairs, etc.


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