Monthly Portfolio Report: June 2024
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 June 2024. You can also check out all my previous monthly reports and annual reports.
Property Overview
I had two vacancies in June. The first was at Property #23. I mentioned last month that the turn scope was complete, and I was just waiting expectantly for my PM to place a new tenant. That happened quickly, and the new tenant is already in place as of July 12th.
The other vacancy was at Property #7, where I unfortunately had an expensive turn to pay for — you’ll see this reflected in the numbers below. The scope included subfloor replacements, removing several trees, new doors, paint, and a whole bunch of miscellaneous stuff. That turn scope is just now complete, so we’ll be able to start marketing it for rent.
I paid for another turn this month, at Property #12, but that’s because the tenant chose to vacate a few weeks before their lease ended, allowing us to get an early start on the turn. So that house was technically occupied in June — and unlike Property #7, this turn was very quick and cheap, and there is a new tenant moving in on July 26th.
Rental Income
Perfect collections this month — woohoo!
Expenses
This screenshot comes from RentalHero, the online accounting tool I use for my portfolio.
Some detail on my expenses this month:
Maintenance & Repairs: It was a good month for routine maintenance, but I paid for two turns that drove my rent-ready costs to very high levels. At Property #7, turn costs exceeded $8,500, and there was some additional CapEx as well. Luckily, the other turn at Property #12 cost just $1,600, and a new tenant is already placed.
Utilities: This is for the ongoing vacancy at Property #23.
Tenant Chargeback: At several properties last month, tenants paid for maintenance visits that were deemed to be their responsibility. Once the tenant pays my PM, that payment flows through to me — thus the negative $370 expense.
The Bottom Line
My financial model currently projects my Memphis portfolio to generate $9,477 of positive cash flow in an average month. This month, my cash flow was a paltry $1,793, making it the second-worst month I’ve ever had relative to my cash flow targets. All of this is due to the high cost of the turn at Property #7.
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. As I anticipated last month, the tenant turns dragged my cash flow way down this month, and I’m now in a pretty big hole for the year, more than $8K behind my year-to-date target.
Looking forward to the second half of the year, the good news is that the turns are all paid for, so there’s a chance I can have some quiet months and make up some ground. The bad news is that July has already had a few large expenses at two properties, both having to do with trees. More on that next month…
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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.
