Real Estate Report – April 2017

We are back! We had a great holiday in Belgium over the last week. More details are to follow in the coming week(s) when we review our Savings Rate for April. But first, here is the Real Estate Report – April 2017.

Rental Income

No surprises here, same tenants, same income, all on time again! There is a raise coming for one tenant in July, the others will remain stable for now.

Real Estate Income - April 2017

Real Estate Income – April 2017

Rental Expenses

As you can see below our expenses were quite low for the month, this was as expected.

The expenses for the month include:

  • Insurance (for buildings and liability);
  • Interest costs (mortgage and loan); and,
  • Property management costs.

We were able to complete the installation of the second mechanical ventilation unit. Went in pretty smooth and only took a couple of hours. Unfortunately, due to various circumstances, the moisture barrier could not be installed. This is delayed, but not sure till when. We still like to complete these works in May, if possible.

Real Estate Expenses - April 2017

Real Estate Expenses – April 2017

Real Estate Report – Overview and Forecast

We made a total of €2.264 in net rental income for the month of April (before taxes). The net cash-flow will come in around €1900, which is superb! Our total YTD rental income for 2017 is €7.680 (before taxes).

Real Estate Overview - April 2017

Real Estate Overview – April 2017

May will have way more pain than April as the bill for the second mechanical ventilation will likely come in. We are also scheduled to pay various taxes (a major one this time). Not sure how June and July are going to look, depends on when the moisture barrier will be installed and if we still need to do the outer walls of two units.

The latter is however up in the air, for a good reason. We might sell these two units to expand the number of properties. We are considering the sale and, in combination with an investment mortgage, buy 3-5 units back. This will aid our return on investment and cash-flow (at least in the long term). Working on the details, but we seem to have two interested parties to buy the properties (read: both tenants).

How about you?? Good stories to share on the Real Estate front?

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16 comments

    1. Absolutely, planning to sell two unit. Get an investment mortgage and buy back 3-5 units. Need to set the wheels in motion for this in the coming months.

  1. When I read that there will be an increase for a tenant in July, it made me curious if they are aware of it yet? haha. Being renters ourselves it is interesting to see the landlord perspective.. It does make me wonder how far in advance they plan out our rent increases vs how much notice we get as a tenant.

    Mrs DDU

    1. We have the right to increase rent once per year (as per the contracts), commonly in July. Increases are usually equal (or limited, depending on the type of rental) by publicly available inflation correction percentages. However, the tenant we are talking about is a commercial one. We agreed a max of 10% per year, because we started out low as part of a mutual agreement. This first increase is not a surprise and was known from day 1 of the contract. He just was not too happy we actually did 10%, but he still has a sweet deal for now.

    1. The first two we found by accident, these we are also considering to sell. Procedes will be used for something bigger/more units.
      The other three took us about 3-4 months looking, but we got lucky on this one as there were other buyers out there.
      We love the house hunt, can’t wait to do it again!

  2. Wow, so far so good.

    I’ve noticed that you have placed the mortgage costs in the interest category. Do you only take the interest over the mortgage into account, or are those the costs for the total mortgage payments?

  3. Nice month from a net income standpoint!

    My April was interesting, I put an offer in on a house, had it accepted, then found out it had foundational issues and got out of the deal.

    For me, my rental income has stayed a steady $1300 a month for the past year. I don’t have any plans to get more as this is good for my tenants and acceptable for me.

    Thanks for sharing CF 🙂

    1. Now that must have been interesting, good you did a home inspection. Could have bought a hugh and expensive lemon!
      Nice income @ $1300. Sometimes it is good to keep your tenant if they are good for you and the property. Is worth some money too.
      Thanks for the visit Erik

    1. As do we 🙂 Should come in around €1000/month in cash-flow. But will heavily depend on what will happen (sale/renovations). Will see!

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