Monthly Portfolio Report: February 2023
One of my goals with Rental Income Advisors is to be as transparent and data-driven as possible with my readers and my coaching clients. I think the best way to build confidence in a new investor is to actually show the numbers, to prove that rental property investing really does work as advertised.
For those reasons, I publish a monthly report on my portfolio’s performance. I hope that this chronological history paints a clear picture of what it’s like to be a remote landlord. It’s also a great exercise for me to be sure I’m staying plugged in to all my numbers.
Here is the update for February 2023. You can also check out all my previous monthly reports and annual reports.
Property Overview
My final new property in my recent burst of acquisitions (Property #25) officially came online this month, brining me to 25 properties and 26 doors (thanks to my one duplex, Property #18).
Unfortunately, Property #25 is still in search of its first tenant. On top of that, the tenant at Property #3 turned in their keys this month, citing personal issues for breaking their lease. They left the house a mess, which is pretty typical in these situations — so although I’ll be able to retain their security deposit due to the lease break, this will not come close to offsetting the expense of turning the property for the next tenant. More on this in next month’s update, including the costs.
Rental Income
Collections were perfect this month, no issues!
Expenses
This screenshot comes from RentalHero, the online accounting tool I use for my portfolio.
Here are the highlights with my expenses this month:
Maintenance & Repairs: A remarkably quiet month for maintenance & repairs — which is a good thing, because I’ll need some of those “banked” dollars to cover the cost of the turn at Property #3 in March.
Property Taxes: I paid Shelby County property taxes for the three properties I own without a mortgage. (This happens twice per year; in late summer, I pay Memphis City taxes. This will also apply to Property #20 going forward, which also has no mortgage.)
Tenant Chargeback: I’ll be refunded this charge next month when the tenant pays my PM.
The Bottom Line
My financial model currently projects my Memphis portfolio to generate $8,727 of positive cash flow in an average month — a bit higher than last month due to the addition of Property #25 to the figures. This month, my cash flow was $9,863, over $1K ahead of my projected average. Though my vacancies and Property Tax payments hurt me, this was more than offset by unusually low maintenance & repair costs.
Finally, here’s the running tally and graph I update each month. The dotted blue line indicates my projected average monthly cash flow for my portfolio in each given month. The first two months of 2023 have been very solid:
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About the Author
Hi, I’m Eric! I used cash-flowing rental properties to leave my corporate career at age 39. I started Rental Income Advisors in 2020 to help other people achieve their own goals through real estate investing.
My blog focuses on learning & education for new investors, and I make numerous tools & resources available for free, including my industry-leading Rental Property Analyzer.
I also now serve as a coach to dozens of private clients starting their own journeys investing in rental properties, and have helped my clients buy millions of dollars (and counting) in real estate. To chat with me about coaching, schedule a free initial consultation.
