Real Estate Report – October 2018

What better way to start a Monday morning than with the Real Estate Report – October 2018 edition?! We did some more maintenance, paid bills & got money from the insurance company. Life was good in October!

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

Real Estate Report – October 2018

Rental Income

Our rental income for October 2018 was even lower compared to last month, with a total income of about €3.237. The reason lies in the sale of one rental unit (“Unit 1”). It will pick back up in November and should peak in December of this year. All due to a new real estate investment loan (“Loan 2”).

The monthly income distribution is provided below:

Real Estate Report - October 2018 Income
Real Estate Report – October 2018 Income

Rental Expenses

The expenses for October 2018 were relatively high once again. We had a contractor perform work on the outside of the building that previously flooded. To eliminate the risk of that happening again. We also did some work on the commercial unit; I replaced windows and added new siding.

However, the overall expenses were significantly reduced due to the insurance payout from the water damage! It was a good month, as all properties are now in pretty good shape.

The expenses consisted of the following:

  • Repair/maintenance costs;
  • Mortgage payments;
  • Insurance fees; and,
  • Management fees.

The expenses for the month are as follows:

Real Estate Report - October 2018 Expenses
Real Estate Report – October 2018 Expenses

Real Estate Report – Overview

The net rental and loan income for October was €2.176. The net cash-flow was lower at €1.121.

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 - October 2018 Overview
Real Estate Report – October 2018 Overview

To visualize the net income and net cash-flow of our real estate portfolio (including real estate loan), I made new graphs:

Real Estate Report - October 2018 YTD Income & cashflow
Real Estate Report – October 2018 YTD Income & cashflow

The massive drop in the middle of the year is driven by the rather large bill for renovations. Fortunately the renovations have significantly increased the value of the rental properties, but negatively affected income/cash-flow. Overall, it helped increased our wealth for the year!

Real Estate Report – Recap and Forecast

What’s up for the immediate future? Well, we will be going to the notary to register our real estate loan on a property later this month. This should increase our real estate related income again for November.

I’m also going to start the last remaining (scheduled) maintenance job for this year. I will be installing some new energy efficient double glas windows in one rental unit, with our preferred contractor. After that, it should turn pretty passive again for the next little while.

 

Any good stuff to report with your real estate? Please share your experiences!

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4 Comments

  1. Keep up the good work. Rental properties are something I’ll probably never get involved, not because I think they’re a bad investment in but just because I have my focus and energy in too many other things, but I respect the people that are able to do it and make money off them.

    1. We would like to make it more passive too in the future. But we certainly love the cash-flow (and I now have the time to tackle a few maintenance items we had been postponing due to a lack of time).

    1. hey Rob, we sold half of one duplex and we still have a 3-plex. Plus two loans by the end of this month.
      Got to get the net cashflow in the order of €25.000-30.000 per year to be able to cover taxes and be FI with a solid buffer. Still some work to be done!

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