Real Estate Report – September 2018

Time for a new Real Estate Report – September 2018 edition. Had some serious issues with water last month. We seem to have had an overflowing gutter, which resulted in water damage to walls, ceiling and floor of a rental unit bedroom. It was nasty! More details below.

If you are interested in Real Estate investing, there is a new meetup organized on 9 March 2019. See here for details. The upcoming meetup in November is already completely sold out!

Real Estate Report – September 2018

Rental Income

Our rental income for September 2018 was lower compared to last month, with a total income of €3.712. The reason lies in the sale of one rental unit. This rental income will drop further for October and November, but should pick up again in December. More details below.

The monthly income distribution is provided below:

Real Estate Report - September 2018 Income
Real Estate Report – September 2018 Income

Rental Expenses

The expenses for September 2018 were obviously high due to the water damage repair and consisted of the following:

  • Repair/maintenance costs;
  • Rental correction;
  • Mortgage and loan payments; and,
  • Management fees.

The expenses for the month are as follows:

Real Estate Report - September 2018 Expenses
Real Estate Report – September 2018 Expenses

Real Estate Report – Overview

The net rental and loan income for September was €2.016. The net cash-flow was lower at €953.

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 (and principle) once the loan matures in late 2020.

Real Estate Report - September 2018 Overview
Real Estate Report – September 2018 Overview

Total net YTD income is €8.904 and the YTD net cash-flow is -€593. The low numbers for the year are driven by the rather large bill for the renovations and recent water damage. The renovations have significantly increased the value of the rental properties, but negatively affected income/cash-flow. The water damage is an insurance issues and should hopefully be resolved soon.

Real Estate Report – Recap and Forecast

Water damage

Due to a massive rain storm in early september we had water coming into a rental unit bedroom. We had water coming in through the ceiling, and got into the walls and under the laminate floor.

Getting work done by contractors these days is a pain in the @$$. They are expensive, don’t have time and finding one that is competent is not easy.  After some searching I got a quote from a contractor, which scared the bejesus out of me. The repairs where quoted at €5.500! And that does not include rental fee compensation for the tenant that temporarily moved out.

Since I don’t work anymore, I decided to attack this water problem myself, which was a smart thing to do. I only spent just under €800 in materials, €300 in plumber costs (charge coming in October) and correction for 14 days of missed rental income (~€332,5). So the total damage was about €1.430.


Once the insurance company showed up, I was told that I could not claim all materials/hours. As the laminate floor is not covered under insurance we have for the building. I also made some improvements that I could not claim either. But I could claim my time at €15/hour (and about 80 hours). That’s peanut obviously, but at least we should end up with more money in the bank at the end of the day. Plus some good lessons learned in DIY skills. Not sure when the insurance payment will show up in the account, or what the exact amount will be thou. Hoping for about €2.200-2.300.

Oh, and the gutters have been cleaned and checked. Also fixed some cracks in the outer walls of the property to limit the risk of this shit happening again 😉

Real Estate Report - September 2018 - Water damage before
Real Estate Report – September 2018 – Water damage before
Real Estate Report - September 2018 - Water damage after
Real Estate Report – September 2018 – Water damage after

Other stuff

We sold one unit to family in September and we also repaid a personal loan we had secured  to purchase that property in the first place. This dropped our debt position and increase our cash position. We already secured a new investment, which should be commencing in November if all goes well. We should get closer to that €4.000 monthly real estate income mark, but will not make that just yet. However, our running costs will be lower due to the removal of the personal loan. Our net cash-flow should thus improve for the coming year.

The new investment is a real estate mortgage loan generating 6% net interest. It is a lineair loan that will be paid down to 50% of the original amount in 20 years. We are not expecting this loan to last this long due to the high interest rate. The person that loans the money has the opportunity to repay the loan at any time without penalty. For security, we have first mortgage right on the property that is being purchased. Curious to see how this will go! But it feels good and provided us with both flexibility and good ROI, at acceptable risks.


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


  1. Ouch. But yeah, I’ve got newer places built after 2000, and even one of those exhibited leaks during that downpour. The Netherlands can really bring it down!

    Outstanding job on the repair though. Well done in taking matters into your own hands. Not needing to rely on contractors is wonderfully liberating. 15 EUR / hour for your time seems miserly and unrealistic. Is that because the insurance company categorised it as “own labour” due to no receipt from a contract or something?? I can’t figure how that can be justifiable since you’d be very hard pressed to find someone competent to do the work at that quality level for that cost.

    Good fortune that this event occurred when you had the time and energy to tackle it yourself.

    1. Spot on, it’s the rate insurance companies use of “own labour” indeed! You don’t have to support the hours though, but the receipts for materials kind of give it away how long your worked.
      It could have come at a worse time indeed! Would have been an expensive flooding too.

  2. Ahh, the trials and tribulations of owning real estate! It is great that you have the time and know-how to deal with repairs yourself, will definitely save you money and time.

    We own 16 units in total so it seems we are always dealing with some issue or another! We are currently in the middle of two expensive tenant turnovers, but it looks like one of those vacancies may be filled!

    I have yet to publish a real estate summary on my site but have been thinking about it – maybe I should start.

    1. 16 units eh? That will keep you busy indeed!
      I would love to read those updates, it’s a good thing for other (starting) real estate investors to get a better idea what can happen when you own real estate.
      Thanks for the comment Scott!

  3. We just have a guest house out back that we rent to my in-laws, so nothing exciting there except that an outlet went kaput, so I’ll have to look into that in the near future. We did have to get our roof redone after high winds blew some shingles off. It was old, so insurance decided to just replace the whole front half, which we’d almost done a few months ago. So glad we didn’t because this way we only paid $1,000 (our deductible) instead of $3,300.

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