Turned out I got that house approved for Section 8 after having been previously pulled from the program. There were some very minor fixes (new screen door, screw on circuit breaker covers) to be done per the inspector and then the lease will be signed and she will move in. This will likely be another very long term renter which would be great.Target move in is Friday.
No takers on the vacant apartment but that lady is moving out today and it will be truly vacant tomorrow. We have an application pending and several more showings set up so it should rent soon. Hoping the existing application works out. Apparently the unit is in very good shape and should need no major or minor fix up . just a little cleaning.
We have one other guy in the 3 units whose lease ended 4/30 but he said he wanted to stay and sign a 6 month lease. We said either sign a year or move out and gave him 2 months to decide and during that 2 months he can pay $50 more. We will force the issue this month and either get him on a 9 month or longer lease or get him moved out so we can rent to someone else. I do not want to sign a 6 month lease that ends in December.
and then no other renewals until September and no large work needed.. so hoping to pile on the cash flow. I suspect that many of the 'later lease endings' will renew too.
All real estate tax 1st payments made
I have about $4k more to 'pay back' the rental emergency fund. I will let the rents pay the rest of that back and estimate that happening in 3 months so my savings will continue in earnest starting next paycheck. My savings comes from my W2 income. All rental monies stay in the LLC at this point.
Archive for May, 2016
We have someone who looks good for that vacant house. Section 8 inspection Tuesday. This was the house that was REMOVED from Section 8 due to a bad history from the owner. I got Section 8 reinstated on another house w this issue.. hoping to get the same here.. No rent increase.. in fact $20 less but filled same month, we can ask for a rent increase in a year and generally s8 are much longer term tenants. vacancy is REALLY expensive so trying to avoid that at all costs.. turn over is really expensive too . .I just spent almost $2k getting this house fixed up. do not want it turning over in a year.
Person for 3 unit fell through and chose a place nearer to her work. We are still showing it and still aiming to fill for the first. Fingers crossed
My boss says she IS going to renew me . My contract is up July 7. Not sure for 6 months or longer. I asked for a year and talked to her boss who says he has budget.. and in fact I am already in this budget through year end and he will be put me in for next year. project I am on is likely to extent into mid next year
After July I will have maxed the 401k.. so my paycheck will go way up. What ever that 'difference' is will go directly into savings/investments
HIGH repair month last month and missing 1 month rent.. but still getting NETS of almost $6000. I had almost $3000 of repair maintenance costs last month.. upsetting but not avoidable.. house fix up..fence.. water heater.. sewer rodding.. were among some of the larger items.
I am considering ending a relationship and just sortof moving on. always upsetting/scary/stressful to end a relationship but does not appear to be 'long term' and sortof feeling I am wasting my time and feeling 'stalled'.. just a lot of stuff..
About it for now. despite some bumps here and there still thrilled with new management company and my plan.
For the end of this year I will still save as much as I can.. invest.. develop systems/ processes for the rentals and continue to work on creative ideas to get this house (where I live) paid down significantly..
what a feeling it will be next year this time when I will be essentially 1 year from having all properties paid in full and likely receiving over $8000 cash flow.
Apartment in 3 units was rented for June 1. Got a $50 increase. So should be no lag time or just a few days lag time between move out and move in. This is the second time they rented the a unit before the unit vacated
All work done at the house that we are renting (well steam cleaning happening today and final work so will be done by end of day) I feel concerned I went with too dark a color. I will look at it all cleaned up Saturday and with lightbulbs. Showings start tomorrow. Fingers crossed.
Tenant in 2 flat. We will sign to a new lease.. 9 months. no rent increase (manager feels she can not afford it).. all rent due by the 15th if paid late gets a $75 late fee.
I got the 2 flat.. 14% CAP rate. upper unit is up for renewal and wants to stay. She currently has until the 15th to pay her rent and gets no late fee until the 30th. I do not like that at all. We are going to give hew a new lease and set it for rent due date the 1st, late after the 5th and if she can not accommodate that the latest we will go is the 8th for rent due with no late fee. I need to be able to depend on the cash flow. Currently she has not paid rent and I feel angry with it but we will fix it with her or find someone else. REAL good time to get new tenants. I will raise the rent slightly on her too.. so far rent increases for the year have totalled $110 and we are listing that house at $90 more rent than what it was and the 3 unit at $50 more rent so hoping to get good increase there.
Other than that all rents in.. and homes are going very well.
They are showing the 3 unit that is up 6/1 now and getting lots of showings at a $50 increase in rent
and will show the house that was recently vacated starting Thursday (have a list of people who want to see it). House is being repainted and minor fix up and cleaning. Turning over this house with top/bottom paint and cleaning, minor fix and carpet clean is expected to cost $2000+. I am so glad this firm is getting better long term tenants and so glad I am LEARNING about costs and how to cut them. Feeling the best I have ever with the homes and plan.
Speaking of the plan. I need to increase my rental emergency fund with all the homes to $25k. I will work on that gradually but that is my new goal. I need that to avoid cutting in to much my cash flow per month when I start to rely on it if I do major fix up works
Still looking at $7-8000 net based on CURRENT RENTS (now).. Wow. did not think I would come so far so fast
Still no plan to pay down house (my own) or reduce housing costs.. monthly mortgage is $2700 but I pay $450 extra.. that is a big chunk if I only rely on the rental income.. I want my housing cost lower.
My contract at work is up July 7.. project I am running is expanding and has at least til November to go. I iwll ask for a 6 month or more renewal. Actually my plan is to talk to sales and get a read on what else they are trying to sell to this customer and get an extension for a year or past Christmas.
Paying back my rental emergency fund has crimped my savings for last month and this month but will resume regular savings next month.
About all for right now. Have a good day folks