Another year has passed and it’s time once again to report on the progress of our rental property.
To see 2013 and before, visit the link at the bottom of the post.
I had a few negative things happen this year that could have ruined the year.
First, my tenant broke his lease. This was somewhat expected. He’d been telling me that a job change was coming. The transition was uneventful and I only had five days of vacancy. And…I was able to raise the rent by $100 a month!
Second, I screwed up a DIY repair. The shower valve went bad last winter and I attempted unsuccessfully to repair it on my own during the vacancy period this May. I ended up doing more damage and had to call in a plumber. Not only was the fix time-consuming and expensive ($496 total), it required dry wall and tile work, which the plumber wouldn’t do. On the positive side, I can now do dry wall and tile work.
Finally, the hot water heater went bad over July 4th weekend. As fate would have it, I was out of town at the time and couldn’t do a proper evaluation. So I bit the bullet and replaced the seven year old heater, sight unseen. I spent over $1,300 on the new heater. On the positive side, I won’t need to replace a water heater for several years.
So even though I had some issues, in the end, I was able to make the most of things and have another very positive year.
I expect the year-ending cash flow report to again be very strong. Let’s dig into the numbers.
2014 Cash Flow Analysis
2014 Rent Collected
1,775.00 January Rent
1,731.00 February Rent (less tenant repair)
1,775.00 March Rent
1,775.00 April Rent
515.32 May 1-9 Rent
1,028.23 May 15-31 Rent
1,875.00 June Rent
1,875.00 July Rent
1,625.00 August Rent (less 2 nights hotel for hot water issue)
1,875.00 September Rent
1,875.00 October Rent
1,875.00 November Rent
1,875.00 December Rent
Total Rents Collected $21,474.55
We collect rent using Chase Quickpay, which makes it super easy and free. Our new tenant was a Chase account holder. I can’t stress enough how easy this makes the process. In my next lease agreement I may make this mandatory.
$10,104.44 Mortgage Payments for 12 Months (Details of the loan)
4,736.87 Property Taxes (These went up by $500 in 2014!)
2,100.00 HOA Dues for 12 Months (It’s a townhome, so this pays for lawncare, outside insurance, and the pool)
491.56 Insurance (Condo policy through Allstate)
100.00 Repaint Front Door (per HOA regulations)
496.00 Repair Shower (DIY gone bad)
1,177.24 New Hot Water Heater
164.00 Plumbing Repair
Total Expenses Paid $19,370.11
Total Cash Flow $2,104.44
Not as nice as I hoped. The repairs really cut into the profits. But still very positive, and that’s $2,100 I have in my pocket. In unrecognized gains, the property is really climbing up there in value. And I can’t wait to see what kind of loss I get to count against this years personal income.
Up next for this property: the lease runs out in June. I’m hoping the current tenant will stay on another year. We’ll see.
You can read the entirety of my rental property experience by sifting through the real estate category.
What are your thoughts on our year three cash flow report? Leave your comment or question below.
So see last year’s cash flow report, click the next page below…