So here’s my very first cash flow report I’ll be sharing with you all. These are actual numbers of what my rental properties have generated for the month of February.
Note that when I run a cash flow analysis, I will average in the cost of maintenance and vacancies. Though for the purpose of these income reports, I’ll report only expenses as they occur. So if there were no maintenance issues for a given month, I’ll report zero. What’s not shown is that a portion of the cash flow every month is actually going towards building up my reserves.
I currently own 2 single family homes that are rented.
Rental Property #1
At first glance, this month’s cash flow for RP #1 might look a bit boring. When it comes to rental income, I like boring.
You won’t notice from this statement, but this property has a tenant who finally caught up with their rent payment in January and was on time for February. It is such a relief, let me tell you. Back in September of 2015, the tenant first missed their payment. I put my faith in my property manager (PM) to handle the situation, reach out to the tenant, and try to work with them. Whenever a PM is able to get in communication with a tenant who is behind on rent, this is a good sign. So I let it play its course.
The tenant eventually paid all of September’s rent with late fees during the first week of October. Though now they were behind in terms of October’s rent so the same thing was happening again. This repeated over the next couple months as they were constantly having to play catch up. Chipping away at their balance (with late fees) little by little until they had completely caught up by the end of January. Which brings us to February where they paid the full month of rent on time!
My PM was great during this entire time. They stayed in communication with the tenant and gave me regular updates on their progress and outstanding balance. It was really the first challenge that my PM had to face with my rentals and I have to say they passed with flying colors.
So compared to the last few months, February was boring. But again, I like boring. February saw no additional expenses other than the typical PITI (principal, interest, taxes, and insurance) and property management fees, bringing this month’s cash flow to $475.
Rental Property #2
RP #2 required one maintenance call. There was a broken basement window that needed repairing. My property manager promptly took care of the issue and the total cost was rather low at $32. Aside from this minor repair, as well as the usual taxes, insurance, mortgage payment, and PM fee, the monthly cash flow for RP #2 was $390.
The month of February was a solid cash flow month. All rents were collected on time with only one minor maintenance expense.
Total February Cash Flow: $865