Welcome to my September 2016 cash flow report!
Each month I document how my rental properties (RP) are performing in order to track my monthly cash flow. I share both the good and the bad, as well as any lessons learned from investing in out-of-state rentals. For these income reports, I’ll report everything as they occur. That means if no rent came in, there will be a big fat zero. The same goes if there were no maintenance issues for a given month.
Without further adieu, let’s jump into this month.
Here’s the roll up cash flow summary for rental property (RP) #1.
September rent was paid in full! This month marked the 2-year anniversary of these tenants. Hooray!
That’s 24 rent payments that I’ve collected! I’m not going to lie, but some of those payments took some work. Though not from me, but the PM. As a passive owner, I just sat back and watched (more like waited by email) in suspense. The PM has done a great job in collecting my rents, increasing rent from $1150 to $1200, and quickly handling all maintenance jobs.
This past month there was one maintenance call that cost a plumber’s afternoon in cleaning out a main drain line that was backing up. It wasn’t cheap, but I hope this line stays clear for quite some time.
September’s net cash flow came out to $315.
Here’s the roll-up cash flow for rental property (RP) #2.
It’s been 3 months since this new tenant moved in and you know what I love about them?
- They pay rent in advance every month.
- They’re quiet.
I know it’s still pretty early in their lease, but let me rejoice for a minute.
I haven’t heard a peep out of them so I’ve got a good feeling. They remind me of the great tenants I had the previous year who were silent all year until they told us that they were shopping for a home of their own. I only hope this tenant stays for longer than a year.
Net cash flow for RP#2 for the month of September came out to $421.
Cash Flow Summary
Net cash flow from both properties: $737
How much time did I spend?
September was a classic example of how these rentals were truly passive.
I logged into the Owner’s Portal of my property manager’s website twice this month. First at the beginning of the month to check that my tenants had paid their monthly rent. Then a second time at the end of the month to download my Monthly Statement.
I’d conservatively estimate that I spent about 10 minutes on my rentals during the month of September.
That was it! Seriously.
10 minutes a month — This is what passive income is all about!
I’ve spent more time on Yelp trying to decide what I want to eat! In fact, writing this cash flow report has taken more of my time!
So what did I do with my extra time?
Truly passive months like this one are great as it allowed me to focus on other parts of my life. With extra time though, we can easily squander it if we don’t have a plan.
I’ll admit, I had my unproductive moments this month.
Like starting and finishing all eight 1-hour episodes of the Netflix Original series, Stranger Things. I specifically got rid of cable years ago in order to cut the T.V. out of my life. Though as a compromise to my wife, we kept Netflix. I don’t know how it happened, but I’m sure you’ve been there. You’re sitting on the couch taking a breather. You say 1 little episode won’t hurt, but before you know it, you’re sucked in. The evening is shot and you wonder where your time went.
But I was productive too!
I attended FinCon 2016! For anyone wondering, this is a personal finance conference for people who blog about money, investing, and the like.
Hands down the best conference I’ve ever been to. Mind you, the only conferences I’ve attended were the nerdy (not in a hip personal finance way) engineering kinds where researchers present their extremely specialized work.
The best part about FinCon was the opportunity to meet and hang out with some amazing bloggers. Shout outs to the following bloggers!
- Michael – Financially Alert
- Brian – Rental Mindset
- Yetisaurus – Yetinvesting
- Eric – EricBowlin.com
- Erion – Investing Architect
- Chad – Coach Carson
- Rich – Rich on Money
- Joe – Retire by 40
- Dom – Gen Y Finance Guy
- Sarah – High Fiving Dollars
They not only write great articles on their blogs, but they’re fantastic people to hang out with! I encourage anyone reading here to go check them out.
And that pretty much concluded my month.
What do you all think of this month’s cash flow? Passive enough for you or was 10 minutes a little too active?