Monthly Portfolio Report: November 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 November 2023. You can also check out all my previous monthly reports and annual reports.
Property Overview
I had three different properties vacant in the month of November:
Property #20 was vacant as we looked for a new resident following an eviction and turn. As of December 5th, a new resident has moved in, so this property will be back to occupied in next month’s report.
Property #18 also had a recent eviction and turn in one unit of this duplex. The rent-ready work was completed in November, and the unit is currently being marketed for rent. We were getting good traction on this listing, but some prospective tenants reported that the carpet on the stairs (the only place where I have carpet in this property) had a bad odor, so we just replaced that. I hope to have a new resident in place by January.
Property #22’s tenant vacated at the end of October. My PM completed a large turn, and got a new tenant in place by November 20th, which was the most efficient turn I have ever seen in my portfolio. Even better, the new tenant is paying $1200 vs. the previous tenant paying $825, so the numbers for this property look very good moving forward. This exactly follows the plan I had when I purchased the property earlier this year — I knew I’d have a relatively expensive first turn, but that I’d be able to charge more in rent if the existing tenant chose to leave.
Rental Income
Due to my vacancies, the rent charged this month was down a few thousand dollars. However, I retained a few security deposits from the previous tenants, and those transfers hit my account this month, which is why I had an overage in my collections.
Expenses
This screenshot comes from RentalHero, the online accounting tool I use for my portfolio.
Here are the details around my expenses this month:
Maintenance & Repairs: A big month, mostly from rent-ready work associated with my vacant properties.
HOA Fees: In addition to my two little condos (Properties #24 and #25), I have one other property with an HOA fee: it’s a single-family home that happens to be in an area whose residents organized a community. It’s only ~$35/mo., but it’s charged annually, and this is the month I paid it.
Legal Fees: This was the “set-out” fee for Property #18, which is charged when my PM takes back possession of the home following an eviction.
Utilities: When properties are vacant, I’m responsible for the utilities.
Tenant Chargeback: The negative expense here indicates that a tenant has paid my PM for a previous piece of work that was deemed to be the tenant’s responsibility. When that happens, I get reimbursed.
The Bottom Line
My financial model currently projects my Memphis portfolio to generate $8,598 of positive cash flow in an average month. This month, my cash flow was $4,783, nearly $4K below my projected average. With multiple vacancies and turns going on, I knew it would be a tough month, and it was — this was my lowest cash flow month in over a year.
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. While I briefly got back into the green after October’s report, I’m back into the red for the year, and in all likelihood will end 2023 slightly behind my cash flow project…but not by much:
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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.
