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Net rents update-highest month so far.

March 17th, 2016 at 07:02 am

HI all

net rents update

Highest month so far

First 2 months this year (with 2 vacancies) was running at $5100 average (NET) before paying mortgage

This month (all units full) I am at $7387 NEt (before mortgage)

I will continue to track this but hoping for a continued upward trend from last year and with better management I should have it

My management fee is lower w this new company 7% down to 5% of rents and repairs costs are MUCH LOWER (and less frequent) and I have increased collection of rents and late fees .. so so far so good. I am hoping the BIG turn around will be in finding better tenants who stay longer. This management company has placed 3 people so far for me (and all seem good but time will tell). One was a replacement tenant (turning over a unit with 6 days downtime!!) and 2 were just to fill vacancies.. one from an eviction. one with a new property.

Last year I had extreme vacancy and legal costs and lower rents because of it.

23 months to go to pay off these 2 3 units.. so I will use what I have learned and work w this management company to continue this upward trend so reach my goals

I think I will reach my net rents goal but still stuck somewhat with owing this $300k on my primary house I do not like owing that much and am wanting to find ways to get that paid down or owe less. BY 6/2018 at current trend. I will still owe like $260k which will make me feel uneasy to leave my higher dollar job or relax. I want that paid down considering (to less than 100k) and maybe then refinnance to a lower payment?

A lot can happen in 2 years though so onword!

Where do all these net rents go right now? My mortgage payment is $5094 for the 3 units and the rest I either pull out to add to savings or will start using to take care of these large improvements I want to do this year.. so I am not pulling from the homes yet

Rachael

4 Responses to “Net rents update-highest month so far.”

  1. AnotherReader Says:

    Very smart to reserve the net income for repairs and capital improvements.

    I would not worry about your primary until you have these units squared away with strong reserves and a history of consistent cash flow. Then point the cash fire hose at your house.

  2. LivingAlmostLarge Says:

    I agree probably wiser to keep cash for vacancies and repairs until you see how things smooth out more.

  3. VS_ozgirl Says:

    Congratulations on your highest month of net rent so far!

  4. Rachael777 Says:

    at the end of this year I will owe approx $75k on the 2 3 units. I will breathe a little easier than. also when I am renewed. I do not like being so money oriented (watching funds) all the times and need to learn to live NOW too not keep counting down. so will work on ways to relax have fun.. some at low/no cost but I can spend some too and need too. My job IS SUPER busy I work 50+ hours every week which is good money wise but is taking a toll. It feels like I work 6 days a week because basically I do. I am working at home almost every Sunday for a few hours

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