Real Estate Report – August 2018

This Real Estate Report – August 2018 edition a lot shorter than the one from the previous month. The renovations are largely complete, albeit some windows still need to be installed. Not a lot of bills this month, but tons of income. August was good!

If you are interested in Real Estate, we are still to do a introduction course in Utrecht in November. See here for details.

Real Estate Report – August 2018

Rental Income

Our rental income for August 2018 was unchanged from last month, with a total income of almost €3.765

The monthly income distribution is provided below:

Real Estate Report - August 2018 Income
Real Estate Report – August 2018 Income

Rental Expenses

The expenses for August 2018 were very low and consisted of the following:

  • Little bit of maintenance;
  • Mortgage and loan payments; and,
  • Management fees.

The expenses for the month are as follows:

Real Estate Report - August 2018 Expenses
Real Estate Report – August 2018 Expenses

Real Estate Report – Overview

The net rental and loan income for August was €3.165. The net cash-flow was a bit lower at €2.108. As noted earlier, we have a mortgage and we provided a private real estate investment loan that does not pay out the monthly interest (hence a lower net cash-flow). We will get this interest income (and principle) once the loan matures in late 2020.

Total net YTD income is €6.888, net cash-flow is -€1.545. The latter is driven by the rather large bill for the renovations. However, the value of the property has significantly increased over the last 4 years and far exceeded this investment. It also resulted in a higher monthly rental rate and lower emissions due to better insulation. Wins all around.

Real Estate Report - August 2018 Overview
Real Estate Report – August 2018 Overview

Real Estate Report – Forecast

We have a fixed date now to sell one property to family. By the end of this month we will not have 5 rented units anymore, but just 4. However, we will have about €150.000 to invest into a new asset. This will likely be a real estate loan with first mortgage rights. Unless we find an amazing deal in the coming two months or so, which we highly doubt as we are not too active in looking around.

The reason for the loan is flexibility in combination with a very reasonable interest rate. In total our monthly real estate related income should hopefully increase above the €4.000 mark as of October or November. All depends on what we find and when.

 

 

Any fun stuff with your real estate? Please share your experiences!

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8 Comments

    1. Hey Rob,
      We got both, two separate buildings and one multiunit building. Keep an eye out for more (unforeseen) expenses, slight issue with water yesterday….

  1. Good work cheesy guys! I get that you are now offloading property with these prices. I would consider selling my primary residence and renting for a few years if prices climb another 10-15%.

    I bet you can make a lot better (and more passive) returns on that 150k invested right now vs keeping it in your appreciated property.

    1. We have considered the same, selling and renting back. If you are not emotionally attached, selling your primary house to capture capital gains and renting for a while might not even be a bad idea. Downside thou, rents are high too.
      But you are right, we would get a better return on investment on that money. That is also why we expect the total income from loans and property to exceed €4.000/month when reinvested.

  2. Looking good Team Cheesy! The expenses from last month look insane in this graph, but the consistent income from your (future) four rentals should be a nice income flow. I’m very curious about the details of the €150.000 investment to be made! Let us know!

    DI

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