Monthly Portfolio Report: October 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 October 2024. You can also check out all my previous monthly reports and annual reports.
Property Overview
Still fully occupied this month!
Rental Income
There was good news about my tenant at Property #11, who has lived in the home for nearly 6 years. After falling behind on their rent since August and being under eviction, they were able to pay their back-rent and get fully caught up! Because the tenant paid 3 months of rent at once, I had a large surplus in collections this months, which offset the shortages in the preceding months.
This is a good reminder that just because a tenant falls behind on rent and eviction proceedings are initiated, this does not always mean that the tenant will actually be evicted from the home. They’re good tenants, so I’m glad they were able to get caught up, and hope their situation stabilizes moving forward.
Expenses
This screenshot comes from RentalHero, the online accounting tool I use for my portfolio.
To explain my expenses this month:
Insurance: For the 6 properties that don’t have an escrow account — 4 of them I own outright, while the other two don’t have escrow accounts — I have to pay my annual insurance premium directly, all in one lump. So that’s what this month’s $3.6K insurance expense is for.
Property Management: In addition to my normal PM fees, I had a $250 lease renewal fee this month. (Also, the overage in rent collections means more PM fees!)
Maintenance & Repairs: A solid month for expenses, with just a handful of typical stuff like a bathroom sink drain, a blow fuse, a heat repair, etc. In total, it came in well below my monthly budgeted amount for maintenance, which is just over $3,000.
Tenant Chargeback: These are maintenance/repairs that will eventually be refunded to me when the tenants pay back my PM for work that was deemed their responsibility.
Utilities: The local Memphis utility charges $200 when an account changes hands, essentially as a security deposit. This is refunded when the tenant moves in, and puts the account in their name.
The Bottom Line
My financial model currently projects my Memphis portfolio to generate $9,506 of positive cash flow in an average month. This month, my cash flow was $12,684, more than $3K ahead of my target. Having no vacancy helped me, as did the “triple rent” from Property #11. My insurance expenses hurt me, otherwise my surplus would have been even higher.
This helps me to dig out of the hole a bit for the year, which is most welcome! 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. I’m still more than $10K behind my annual cash flow target, but the picture has improved over the last couple of months.
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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.
