Description: 2 bed, 1 bath, roughly 1650 square feet, 0.6 acres.
Major work completed:
25% floor tiled.
Driveway repaired.
Exterior repainted.
Rear ramp repaired.
Hot water pipes replaced.
Financial Information:
Estimated monthly cash-flow: $251.43
Disclaimer: I am not a financial planner, advisor, or accountant. The financial actions mentioned were only suited for my own risk tolerance, strategy, and ideas. Copying another's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.
To protect the tenants and their identities, this is only a visual representation of the rental property, not the actual home itself.
I have to admit man I am impressed. You mentioned <$10/hour job and getting $200 cash flow a month.
ReplyDeleteHow do you budget out and plan for expenses?
I had always thought about...
10% goes to repairs
10% property management company (I do NOT want to deal with the headaches of being a landlord myself)
10% vacancy (to plan for the months in between renters)
10% set aside for taxes. In the beginning when you have your loan interest and deprecation as a deduction they cover most of the taxes but eventually you'd need to pay taxes
The figures above look good, but honestly it has been very difficult to budget the rental adventures...I can go 2 years with nothing bad happening. Then immediately a water heater and all hot water pipes replaced ($1200 expense) in one house.
ReplyDeleteWhat helps me, is to deposit my rental incomes into their own account. As the account reaches $3,000 any extra can be withdrawn. This cushion is probably too big but it is sure to cover everything but a roof replacement.
As for taxes, I'll post about these later, but basically the write-off amounts will be the gravy in the investments, not the cash-flow itself.
Thanks for sharing these type of post. Such types of post are very useful for the guy who interested for the purchasing or renting property. Property Investment Victoria
ReplyDelete