My rental property portfolio enjoyed the holiday season. This month was light when it came to repairs & maintenance requests. Progress was also made in the on-going eviction Saga at rental property #4. In general, 2018 ended well for my rental property portfolio.

The Landlord Report – December of 2018

Hello there – welcome to another “Landlord Report”. This monthly report shares my experiences as a landlord. The report will show EVERYTHING related to my rental properties and life as a landlord.

I will discuss the rents that I collected, mortgage payments, and other ‘landlord items’. I may include repairs, how I avoid vacancies, how I screen new tenants or any other items that pop up. This report will share how I made or lost. I will also share what kind of time commitment was required for being a landlord. I want to show the world being a landlord is a wonderful thing.

Throughout this process, I will be as transparent as possible. Being a landlord and owning rental property is a wonderful way to earn (mostly) passive income and allow you to buy back your time faster.

I hope you follow along with this monthly series. The Landlord Report can serve as a guide to owning rental property. Please feel free to contact me with any questions – happy to provide insight.

The table below outlines all my income and expenses for the past month:

As you can see, December was a profitable month. This month was not quite as lucrative as last month (November 2018) but still one of my best months when considering the cash flow. I made over $3,800 after my expenses and mortgages were paid. My rental property portfolio produced income while still incurring expenses (more on that in a bit) and struggling through an eviction where a tenant is not paying rent (more on that too).

I cannot wait for the eviction saga to be over; rental property #4 is about to turn the corner. Rental property #1 and rental property #2 enjoyed a perfect month. Rental property #3 and Rental property #4 had a few minor expenses and items worth discussing. Being a landlord is not all sunshine and cash flow. But! I still love being a landlord. Below you will find a detailed account of what happened at each property this month.

Rental Property #1

The Starter Home

Things were absolutely boring and easy with rental property #1. I never heard a peep out of the tenants and there were no repair or maintenance items this month. The tenants paid their rent in full and on time. I collected the $2,325 on my way home from work. This costs me about 15 minutes of my time.

Rental Property #1 Summary

In summary, rental property #1 – earned $356.76* earned and I spent about 15 minutes managing the property.  My mortgage debt dropped by $727.98 from my monthly mortgage payments. When considering the principal reduction, I came out ahead by $1,084.74.

*Remember – this is an accidental rental that I plan to live in during FIRE.

Rental Property #2

The Fixer-Upper

Rental property #2 had a perfect month. The tenants paid their rent of $4,050 in full and on time. Rent collection required me walking downstairs to get my morning cup of coffee. Does life get any easier than that?

Rental Property #2 Summary

In summary, rental property #2 – earned $1,414.89**. I spent about 1-hour managing rental property #2 this month. My mortgage debt decreased $753.06. When factoring paying down my debt, rental property #2 made me $2,167.95. Not bad for about a couple of hours of work. Oh, and I got a free place to live.

**I also live in the house and get paid to live here. Pretty sweet right? House Hacking is awesome.

Rental Property #3

My Duplex

Things at rental property #3 were relatively quiet this month. There were no repairs for the property. Utilities were the only expense. I imagine the gas bill will spike for the next three months now that its winter. Looking forward to when I have new tenants so that I no longer have to pay for gas. 

Utilities for the property:

Gas Bill: $182.29

Water Bill: $210.34

Electric for unit 2: $60.23

In summary, rental property #3 – made $1,363.06 and I spent about 30 minutes of my time managing this property. Rental Property #3’s mortgage debt also decreased $423.22. When factoring in paying down my debt I made $1,786.28.

Rental Property #4

The eviction saga continued in December. As expected, the tenant in unit #3 did not pay his rent by the 5th day of the month. This was a violation of our agreement from mediation and caused me to file for a Writ of Restitution the following morning. Our court date was set 10 days later. 

Flash forward to our court date – I accidentally went to the wrong courtroom. Doh! However, thankfully this did not hinder my ability to take legal action or keep things moving forward.

After finding the correct courtroom, I discovered the tenant did not show for our court date. The judge listened to me stumble through all the legal jargon, took pity on me, and granted the Writ of Restitution. This means that I officially have the courts blessing to evict the tenant. This also means that the U.S. Marshalls will be assisting in the matter.

I was required to return to the courthouse two days later to file two forms. This was a quick trip that took about 15 minutes. However, I would need to return the next day because the court records were updated in the system yet. Returning the following day, the system still was not up to date. 

After sitting around for about three hours, the clerk called my name. I approached the gentleman to find all my paperwork was in order, I was granted the Writ of Restitution, and that I should expect a call from the U.S. Marshalls in early January. 

At last, the eviction battle was over. The end is near and the punk who willingly does not pay his bills will be removed from my property. I small victory but a modest financial loss. I look forward to providing an update (hopefully) in January about the tenant being removed from the property. The eviction saga is not quite over yet – but we are getting there.

Despite the pain and headaches caused by tenant #3, rental property #4 is still throwing off a bit of cash flow. The property produced cash flow even after a repair and the standard utilities. The plumbing stack for the building backed up and required a 50-foot snake. It appears that one of the tenants put some sort of cloth, napkin or paper towel down the drain. 

Otherwise, there is nothing to report except for this month’s utilities.

Minor plumbing repair:

Total cost: $350.00

Total time: 1 hour

Utilities:

Water Bill: $173.60

Common area electricity: $43.59 

In summary, rental property #4 – made $670.02 and I spent about 15 hours of my time managing this property. The property will be more profitable once it’s fully leased. Rental Property #4’s mortgage debt also decreased $444.70. When factoring in paying down my debt I made $1,114.72.

Portfolio Summary

In summary, I spent about 16 hours and 45 minutes of my time maintaining my rental property portfolio. Most of the time commitment was from the ongoing legal battle with the tenant at rental property #4.

In December, my rental properties made $3,804.73. I made $227.15/hour being a landlord. Being a landlord is provides one of the best dollars per hour sources of income. I expect things get even better once I resolve the non-payment of rent issue.

My mortgage debt decreased $2,348.96 in November. Gotta love having tenants pay off over $2k of my debt every month. Factoring in repayment of debt and cash flow, my rental properties made $6,153.69. So, I made$367.38/hour. 

Being a landlord and owning a rental property portfolio is a great way to build wealth. What is your excuse for not owning rental property?

I’ve made a habit of setting new goals and reviewing old goals. This usually occurs during the last two weeks of December. Last year, I shared how to create SMART Goals when created my goals for 2018. I won’t recap how to create smart goals on this post, but I will review my 2018 goals. I will also share my goals for 2019.

First, let’s start by diving into last years goals and see how I did.

Reviewing 2018 goals

I set five goals for 2018 which are outlined below.

1. travel more
2. Improve overall health
3. Max out 401k & Save $50k in brokerage
4. Give back more
5. Grow the blog 10x

Travel More

I set the goal to travel more. More specifically, I wanted to take a trip every other month. Or said differently, I wanted to travel 6 times. Well, I set this goal before 2018 started. This goal was set before I accepted a new job that started in February.  Taking time off at a new job is hard. Combined this with my boss taking medical leave to fight cancer less than two weeks after starting the job made taking time off near impossible. I wasn’t able to take an international trip but still managed to squeeze in some fun.

Camp FI – I attended CampFI Mid-Atlantic and had a great time. Highly recommend checking one out if you have not been. I would like to attend in 2019 but most camps are already full. This was a great time with like-minded people seeking financial independence. There were great speakers and fun activities.

Colorado climbing trip – I was able to escape work for a couple of days during the summer. I use this opportunity to escape to the Rocky Mountains in Colorado. During my trip, I climbed Mount. Quandary which is one of the tallest mountains in Colorado. One of my goals is to climb all the 14ers.  Also got to see Miss Mazuma

FinCon – I attended my second FinCon this year, which was awesome (Orlando as a location? not as much). This is a conference where money and media meet. The conference has become one of the highlights of my year. You could argue it is the Super Bowl for bloggers and writers. This is also a great time to catch up with friends from the finance and real estate world.

 

Beach retreat – I had a ton of vacation days to burn towards the end of the year. So, I hopped into the car and drove to the OBX for a beach getaway in November (brrrrr). It rained the entire time but I was able to catch up on sleep, reading, and writing.

Hiking trips  – I took a few weekends or overnight trips to hike. This is honestly one of the best and most cost-efficient getaways out there. The outdoors are my zen place and help me recharge. Without these trips, I would’ve completely burned out this year.

Raleigh reunion/caps tradition – I took a road trip to Raleigh to visit a buddy from college. I am a diehard Washington Capitals fan. My friend is a Hurricanes fan. Most every year we visit each other to see the Caps and Canes take the ice. This was a great time that was filled with hockey, drinking, and tons of good food.

Conclusion: I achieved this goal but failed to make an international trip.

 

Improve my overall health

This goal was listed second but is by far the most important. Going into 2018 my health was the worst it has ever been. I stupidly sacrificed my health while hustling, building my mini real estate empire and chasing financial freedom. 100 hour weeks became the norm. Sleep became evasive and working out fell by the wayside. I also developed severe back pain in 2017.

My sleeping patterns have greatly improved over the last year. I am working out again and fairly regularly. I also got to go for a bike ride or two with Dave from Accidental FIRE. My overall fitness and health have improved though my weight is not where it should be.

Conclusion: I achieved this goal and my health/fitness is much better than this time last year. However, I still have plenty of room for improvement.

 

Max out 401k & save $50k in brokerage accounts

Well, this was my second most lofty goal (keep reading for the loftiest) for 2018. I wanted to max out my 401k and save $50k in a brokerage account. Also, I did not share this last year, but I wanted to keep maxing out my Roth IRA. All of this saving would propel me closer to achieving financial independence.

I would like to take a moment to before sharing my results on this goal to mention a couple of things. These numbers are BIG and may seem unrealistic or unobtainable to some.

Early in my journey, I could not even imagine saving/investing this month in a year. I started saving small amounts like $10 or $20 any chance I could. Over time, I was able to increase my income from switching jobs and having multiple side hustles. The increased income played a large role in my ability to save. I am a big proponent of focusing on increasing your earnings; I call this offensively building wealth.

Do not let my numbers be off-putting to you. Everyone has a different starting point and ending point. Do not compare your situation to others. Rather, find a way to put yourself in a better position than you were yesterday.

So, how did I do with my savings goals for 2018?

401k -I successfully maxed out my 401k. This means I saved $18,000 in my retirement account plus whatever my employer contributed

Roth IRA – I successfully executed a backdoor Roth IRA conversion and contributed the maximum contribution. So, I saved $5,500 in my Roth.

HSA – As I mentioned earlier, I switched jobs in February. My new job offered a Health Savings Account (HSA for short) which allowed me to save $3,450. This was a combination of my contributions and contributions from my employer. I’ve wanted access to an HSA for years and am glad to finally have one. You should SERIOUSLY consider opening one of these accounts. They are one of the BEST ways to save for retirement (both early and traditional).

Brokerage – My goal of saving/investing $50k in my brokerage account was lofty. Between buying index funds every week and strategically buying dividend stocks, I saved $45,781.22 in my brokerage account. I fell short of my goal by $4,218.78. I would have achieved my goal if rental property #4 didn’t sit vacant for 9 months (thanks DC government). Still, I very happy, fortunate, and blessed to stock so much money away. This is a privilege not everyone is afforded.

Conclusion: I did not achieve this goal but came close. I am happy with my progress and am not losing sleep on this one ‘failure’. I failed upwards and came close.

Give Back More

Volunteering and giving back to my community is something I have always valued. This will always be important to me. During 2018, I found small ways to practice random access of kindness. Likewise, I also found ways to make bigger impacts.

I fed 120 people for Thanksgiving. I don’t say this to boast or brag but merely to provide an example of ways I achieved this goal. In fact, I don’t mean to boast at all. I haven’t mentioned this to anyone in ‘the real world’ and am only sharing this in my ‘safe, private corner of the internet’.

Conclusion: Pass, but I want to do more.

10x Blog Traffic

This was my most lofty goal of the year. Increasing anything 10x takes a lot of work, dedication and a bit of luck. Well, I fell short on this goal slightly. I increased my site’s traffic by 7-8x. I would have likely met this goal if I remained focused and kept writing the second half of the year. However, I also have a life outside of this blog and sometimes cannot commit the time I would like to. This was a very challenging year on a personal and familial level; matters in my life required attention that was not anticipated. May sound like an excuse? It is. Heck, some would say life happens.

Conclusion: FAIL. This goal could have been met but I did not take the necessary actions to get there. I lost focus and have no one to blame but myself.

Setting 2019 goals

1. Improve my health, lower my weight, and kick ass – I want to continue improving my health in the new year. I have probably 15-20lbs that I need to get rid of. I also want to improve my functional fitness so that I can enjoy life and tackle some of my bucket list goals like climbing more mountains and hiking the entire Appalachian Trail. The highest form of wealth is health; without it money is pointless
2. Change Lives – I want to positively impact those around me. I want to change lives and help people around me. I want people to be their best possible selves and help them get there if I can. I want to use my life energy influence and improve the world and the wonderful people who live here.
3. Travel more – This goal is a carryover from last year. Now that I am more established in my current job, I want to take a few more ‘real’ vacations. I want to go international once or twice in 2019. Traveling is something that I am passionate about. I feel that I grow when I travel – especially via solo travel abroad.
4. Be present – I am often looking deep into the future and making plans for a better tomorrow. I am taking actions now to set myself up for a better tomorrow. Sometimes, I am not living in the moment. This is something I want to work on. I am fairly self-aware and want to improve on being more present and living in the moment (occasionally – don’t want to lose track of tomorrow).
5. Secret goal about starting something new – this may seem like a copout, but I have two endeavors that I really want to chase (or start). I am hoping to start at least one of them in 2019. One endeavor is more of a ‘non-profit’ give back/feel good type of thing. The other is a for-profit enterprise that I am passionate about (hint: it involves real estate – go figure).

My rental property portfolio bounced back from the dreadful month we experienced in October. From a cash flow perspective, November was my best month as a landlord – EVER. There were a few minor bumps along the way and eviction saga still continues. Better days still await my rental property portfolio but I have no complaints. 

The Landlord Report – November of 2018

Hello there – welcome to another “Landlord Report”. This monthly report shares my experiences as a landlord. The report will show EVERYTHING related to my rental properties and life as a landlord.

I will discuss the rents that I collected, mortgage payments, and other ‘landlord items’. I may include repairs, how I avoid vacancies, how I screen new tenants or any other items that pop up. This report will share how I made or lost. I will also share what kind of time commitment was required for being a landlord. I want to show the world being a landlord is a wonderful thing.

Throughout this process, I will be as transparent as possible. Being a landlord and owning rental property is a wonderful way to earn (mostly) passive income and allow you to buy back your time faster.

I hope you follow along with this monthly series. The Landlord Report can serve as a guide to owning rental property. Please feel free to contact me with any questions – happy to provide insight.

The table below outlines all my income and expenses for the past month:

As you can see, November was a profitable month. Scratch that – November was a VERY profitable month. I made over $4,100 after all of my expenses and mortgages were paid. This was my best month as a landlord. My rental property portfolio did this while incurring some expenses (more on that in a bit) and struggling through an eviction where a tenant is not paying rent (more on that too). Brighter days are ahead once we move past the eviction. It’s taken a while to get rental property #4 up and running but she is (almost) humming along nicely. 

Rental property #1 and rental property #2 enjoyed a perfect month. Rental property #3 and Rental property #4 had a few minor expenses and items worth discussing. Being a landlord is not all sunshine and cash flow. But! I still love being a landlord.

Below you will find a detailed account of what happened at each property this month.

Rental Property #1

The Starter Home

Things were absolutely boring and easy with rental property #1. I never heard a peep out of the tenants and there were no repair or maintenance items this month.

The tenants paid their rent in full and on time. I collected the $2,325 on my way home from work. This costs me about 15 minutes of my time.

Rental Property #1 Summary

In summary, rental property #1 – earned $356.76* earned and I spent about 15 minutes managing the property. 

My mortgage debt dropped by $734.55 from my monthly mortgage payments. When considering the principal reduction, I came out ahead by $1,091.31.

*Remember – this is an accidental rental that I plan to live in during FIRE.

Rental Property #2

The Fixer-Upper

Rental property #2 had a perfect month. Our new roommate who replaced the Russian spy moved in – otherwise, nothing to report. The tenants paid their rent of $4,050 in full and on time. Rent collection required me walking downstairs to get my morning cup of coffee. Does life get any easier than that?

Rental Property #2 Summary

In summary, rental property #2 – earned $1,414.89**. I spent about 1 hour managing rental property #2 this month.

My mortgage debt decreased $750.56. When factoring paying down my debt, rental property #2 made me $2,165.45. Not bad for about a couple of hours of work. Oh, and I got a free place to live.

**I also live in the house and get paid to live here. Pretty sweet right? House Hacking is awesome.

Rental Property #3

My Duplex

Things at rental property #3 were relatively quiet this month.

The garbage disposal was jammed in one of the units. I could have easily fixed this myself, however, I was not able to get to the property. Oh, and my go-to handyman was out of town visiting family. So, I called my plumber. He laughed but gladly fixed this problem for me.

You see… This task is well below his skill set and something that would literally take less than 5 minutes of time. He gouged me on the cost. This repair was $95.00. I could have asked for a lower price but everyone’s time is valuable. I also would not have been able to get to the property for a couple of days as my work schedule was hectic. Though it pains me to part with $95 for an easy task, this also saved me a few hours of time while also addressing my tenant’s needs in a timely fashion.

Minor Plumbing Repair:

Total cost: $95.00

Total time: 30 minutes

Utilities for the property:

Gas Bill: $28.33

Water Bill: $224.59

Electric for unit 2: $92.38

In summary, rental property #3 – made $1,375.62 and I spent about 30 minutes of my time managing this property.

Rental Property #3’s mortgage debt also decreased $421.73. When factoring in paying down my debt I made $1,797.35.

Rental Property #4

The drama at Rental Property #4 continues but there is an end in sight. Let’s start with the positive (we will get to the drama shortly).

This was the first month that I’ve had all three units occupied. The last report, I mentioned my third tenant moved in at the end of October. It’s great to finally have the building full.

So, what’s the bad part? Where is the drama? 

The tenant in unit 3 still hasn’t paid his rent. He also violated the protective order and did not pay his rent to the court like he was instructed to do so. We had our second court date in the middle of November where I was reluctantly forced into mediation by the Magistrate Judge. 

The mediators helped the tenant and I draft an agreement on how this problem will be resolved. The main highlights include the tenant paying his rent before the 5th of every month moving forward, bringing his rental ledger current before the end of the year, and me allowing him to break his lease at the end of February provided that his account is current. 

I was frustrated by this process. The tenant was very nasty during the mediation process; I felt bad for the two ladies volunteering their time as well.

You see, this may seem like a reasonable agreement. That’s because it is a fair deal.

But – I have no faith this jackass will live up to the agreement. The best part of the agreement is that its a ‘Consent Judgment’ – so if he fails to live up to any part of the agreement, I get to evict him. Or rather, I get to begin the official eviction process. I have a funny feeling that I will be sharing more news next month about this topic. 

At least I received $598 of his rent from the VA. He is responsible for $610 of the total rent of $1,208. Not a complete loss but still annoying. 

Otherwise, there is nothing to report except for this month’s utilities.

Water Bill: $193.08

Electric for units while vacant and common area: $81.70 (I will only pay for the common area moving forward; should be $20-30/month)

In summary, rental property #4 – made $962.43 and I spent about 10 hours of my time managing this property. The property will be more profitable once it’s fully leased.

Rental Property #4’s mortgage debt also decreased $443.18. When factoring in paying down my debt I made $1,405.61.

Portfolio Summary

In summary, I spent about 11 hours and 45 minutes of my time maintaining my rental property portfolio. Most of the time commitment was from the ongoing legal battle with the tenant at rental property #4.

In November, my rental properties made $4,109.70. I made $349.76/hour being a landlord. Being a landlord is provides one of the best dollars per hour sources of income. I expect things get even better once I resolve the non-payment of rent issue.

My mortgage debt decreased $2,350.02 in November. Gotta love having tenants pay off over $2k of my debt every month.

Factoring in repayment of debt and cash flow, my rental properties made $6,459.72. So, I made$549.76/hour. Being a landlord and owning a rental property portfolio is a great way to build wealth. What is your excuse for not owning rental property?

So October may not be my month as a landlord. I managed a modest profit last month in spite of an eventful month. Last year, October was a crazy month as well. You can read about last years fiasco with raccoons, plumbing problems, and furnaces dying here. This year, October had a completely different set of problems. In fact, I also have a couple of ‘first’ time encounters to share. Grab the popcorn; this is going to be a fund report.

The Landlord Report – October of 2018

Hello there – welcome to another “Landlord Report”. This monthly report shares my experiences as a landlord. The report will show EVERYTHING related to my rental properties and life as a landlord.

I will discuss the rents that I collected, mortgage payments, and other ‘landlord items’. I may include repairs, how I avoid vacancies, how I screen new tenants or any other items that pop up. This report will share how I made or lost. I will also share what kind of time commitment was required for being a landlord. I want to show the world being a landlord is a wonderful thing.

Throughout this process, I will be as transparent as possible. Being a landlord and owning rental property is a wonderful way to earn (mostly) passive income and allow you to buy back your time faster.

I hope you follow along with this monthly series. The Landlord Report can serve as a guide to owning rental property. Please feel free to contact me with any questions – happy to provide insight.

The table below outlines all my income and expenses for the past month:

As you can see, October was a profitable month. Rental property #1 had a perfect month. Meanwhile, there was a minor repair at rental property #2. If you follow my monthly reports, you may wonder why the revenue is so low at rental property #4 (more on that to follow). You will also notice some higher expenses. The chart above only summarizes the monetary activities. I also experienced a tenant fleeing the country which isn’t captured in the numbers (more on this later as well). Being a landlord is not all sunshine and cash flow. But! I still love being a landlord.

Below you will find a detailed account of what happened at each property this month.

Rental Property #1

The Starter Home

Things were absolutely boring and easy with rental property #1. I never heard a peep out of the tenants and there were no repair or maintenance items this month.

The tenants paid their rent in full and on time. I collected the $2,325 on my way home from work. This costs me about 15 minutes of my time.

Rental Property #1 Summary

In summary, rental property #1 – earned $356.76* earned and I spent about 15 minutes managing the property. 

My mortgage debt dropped by $723.96 from my monthly mortgage payments. When considering the principal reduction, I came out ahead by $1,080.72.

*Remember – this is an accidental rental that I plan to live in during FIRE.

Rental Property #2

The Fixer-Upper

Rental property #2 had a minor repair and a MAJOR tenant problem in October. Starting with the less exciting repair – the furry visitor from last month chewed a hole in the p-trap below the kitchen sink. This was a bit annoying but an easy fix. Swapping out the old part for a new part only took 15-minutes. But, I bought the wrong part and had to make two trips to the hardware store. In total, this process took about an hour of time. The correct part cost only $7.72; I will return the excess materials on my next trip to the hardware store.

Minor plumbing repair:

Total cost: $75.33

Total time: 1 hour

So, now the more entertaining news. One of the tenants (roommates) was from China. She was attending a graduate studies program while living in the States on a student visa. One day out of the blue she decided to tell me she would be leaving the country by the end of the month.

You see, this in itself is not a problem. The lease is legally her responsibility until the lease matures or she finds someone to take over her lease. Though, candidly, enforcing my rights as a landlord would be near impossible as she would be fleeing to a communist country. Things started to get more sketchy as the month progressed.

First, she gave little effort to find someone to take over her lease. Then, her rent check for the month bounce. I called her out immediately and made her resolved her rent delinquency immediately. She did.

We knew this roommate/tenant was moving out and were not surprised to see her boxing stuff up to ship back home. She became more withdrawn and reserved as the month progressed. Then, one morning she seemed really off. I didn’t think much of it since it was maybe 6:00 am or 6:30 am.

Later that evening I arrived home to see the trashcans filled with her stuff. I knocked on her bedroom door but received no answer.

So, I decided to poke my head into her room. The room was empty except for all of her furniture.

I gave her cell phone a call only to find that the number had been disconnected. She fled the country a few weeks earlier than anticipated with no explanation.

Essentially, she tried to stiff me on her last month’s rent but was unsuccessful. Thankfully, DC is a very transient city and I was able to find a replacement for her room with little effort. I spent maybe an hour finding a new roommate/tenant and avoided a vacancy.

Also, the entire house believes our long lost roommate might have been a spy.

So, in summary – I’ve had my first international tenant flee the country. She did not satisfy her lease obligations, nor did she leave her room in an acceptable state as she left all of her furniture. As such, she also sacrificed her security deposit.

Besides a possible spy of a roommate fleeing the country, it was a good month. The tenants paid their rent of $4,050 in full and on time. Rent collection required me walking downstairs to get my morning cup of coffee. Does life get any easier than that?

Rental Property #2 Summary

In summary, rental property #2 – earned $1,339.56**. I spent about 2 hours 15 minutes managing rental property #2 this month.

My mortgage debt decreased $748.06. When factoring paying down my debt, rental property #2 made me $2,0877.62. Not bad for about a couple of hours of work. Oh, and I got a free place to live.

**I also live in the house and get paid to live here. Pretty sweet right? House Hacking is awesome.

Rental Property #3

My Duplex

Things at rental property #3 were relatively quiet this month. I received the bill for last month’s repair (water damage from a leaky window). My contractor also replaced the laminate countertops for the upstairs unit kitchen. The labor and materials consumed most of rental property #3’s cash flow for this month. Otherwise, it was a quiet month all around.

Window leak & counter replacement:

Total cost: $1,404.88

Total time: Time captured last month

Utilities for the property:

Lawn care: $110.00 (grass cut & removal of poison ivy)

Gas Bill: $41.09

Water Bill: $260.34

Electric for unit 2: $133.36

In summary, rental property #3 – lost $133.75 and I spent about 15 minutes of my time managing this property.

Rental Property #3’s mortgage debt also decreased $420.24. When factoring in paying down my debt I made $286.49.

Rental Property #4

Rental Property #4… This property has been like a redheaded stepchild since I’ve owned the place. I finally have all three units occupied as my third tenant moved in at the end of October. The new tenant’s rent will be reflected in next month’s report. However, I am also now dealing with my first eviction.

The tenant in unit 3 has willingly decided to stop paying his rent and for no reason other than he doesn’t want to. This is why my rental income is $610 less than the previous month – frustrating but I will manage for now. The blow is softened a bit since the VA pays almost half of his rent.

We had our first court date at the end of October. The case was continued to allow the tenant more time to find legal counsel. However, he does not have any case to make or stand on. As a part of the continuance, the judge granted me a protective order. This means that the tenant must pay his rent to the court until the case is resolved. Failure to do so will result in him giving up his rights and expedite my ability to evict him. The case will resume in the middle of November; I cannot wait to share this story as it evolves.

Otherwise, there is nothing to report except for this month’s utilities.

Water Bill: $107.94

Electric for units while vacant and common area: $79.46 (I will only pay for the common area once all the units are leased)

In summary, rental property #4 – lost $158.19 and I spent about 4 hours of my time managing this property. The property will be more profitable once it’s fully leased.

Rental Property #4’s mortgage debt also decreased $441.66. When factoring in paying down my debt I made $283.47.

Portfolio Summary

In summary, I spent about 6 hours and 45 minutes of my time maintaining my rental property portfolio.

In October, my rental properties made $1,404.38. I made $208.06/hour being a landlord. Being a landlord is rewarding even during a bad month This month’s time commitment was above average. I expect things to improve over time but am curious to see how the eviction saga unfolds.

My mortgage debt decreased $2,333.92 in August. Gotta love having tenants pay off over $2k of my debt every month.

Factoring in repayment of debt and cash flow, my rental properties made $3,738.30. So, I made$553.82/hour. Being a landlord and owning a rental property portfolio is a great way to build wealth. What is your excuse for not owning a rental property?