September 2013 Cash Flow Statement


I used to combine my monthly passive income statement into the monthly expense report. Lately, I’ve been thinking it would be a better idea to dedicate a completely separate section to cover the ever important report of the CASH FLOW statement!

Also, it seems the report will just keep getting longer and more complicated as I continue to buy more properties.

Here is the cash flow statement for September 2013:


Rental Property #1

Rental Property #1 continues to perform and meet expectations. In a previous post, I mentioned that the tenant decided to extend the lease for an additional 2 years. The original rent was $2090/month. After agreeing to the terms, I actually learned that the tenant wanted to add a pet dog. Due to the extra maintenance costs associated with the pet, I let her know that the rent would have to increase slightly to accommodate. We agreed that an additional $40/month was fair. So, the new rent (which took effect in September) is now set at $2130/month.

Rental expenses were mostly standard for this month, with just the mortgage and HOA bill due. However, there was an issue with the garage door springs, and this required removal and replacement of two sets of springs. This set me back $180 for materials + labor. It was a bit pricey, but it does come with a full year warranty. All in all, Rental Property #1 cash flowed $715.89 this month. The first round of property taxes will be due in December, so that’s something to watch out for.

Rental Property #2

Not much to report here. Rental income was $2150/month, and I only had to pay for mortgage and HOA this month. As such, the property cash flowed $685.66 this month. However, property taxes for this property will also be due soon, so I have to keep that expense in mind.

Rental Property #3

The out-of-state property closed in July, and I started collecting full rent in August. It is now September, so I would have loved to have this property firing on all cylinders at this point. Sadly, that is not yet the case.

The first floor tenant has been awesome so far, and has been paying rent on time every month. This accounts for $950/month. It’s been money in the bank. 🙂

Unfortunately, the second floor tenant has been wildly inconsistent (well, consistent in a BAD way) with her payments! This tenant’s rent is subsidized, and Section 8 covers 60% of it. Section 8 is also money in the bank, so I was able to collect $694 of the $1158/month I’m owed. This tenant has failed to pay any rent so far, and still owes me for August as well.

Obviously, things aren’t working out with her, so I’ve been in communication with the property manager to sort this mess out. The property manager sent the tenant an eviction letter to try and get a response from her. Fortunately, she responded back and let us know that she is working with Section 8 to reduce her amount owed each month. Her circumstances changed, and she is requesting Section 8 to take care of 90% of the rent. So, this petition is in process as we speak… once the dust settles, I’m hoping Section 8 will reimburse me for lost rents for August and September. Also, I’m really hoping Section 8 will step up and take a larger portion of the monthly rent. If they will cover 80% to 90% of the monthly rent, I will be able to sleep much easier at night. 😉

For September, I was able to collect $1644 in rent. After paying for the mortgage, property management (8%), landscaping, and escrow account (funds held for annual property taxes and insurance), the property cash flowed $530.73. This isn’t all that bad considering the second floor tenant still owes me $464 for September. Hopefully this will all get sorted out by next month.


Total cash flow for this month is $1932.28. Granted, a large portion of this income will be used to pay for property taxes next month, but it was a relatively good month. Just one major repair, and a tenant rent situation that needs to be ironed out.

It’s landlording… what do you expect? 😉

Print Friendly, PDF & Email
Sharing is Caring:
0 0 vote
Article Rating
Notify of
Newest Most Voted
Inline Feedbacks
View all comments
7 years ago

I have yet to hear a good long term success story with renting to subsidized renters. I never have but my neighbors that have ended up getting missed payments and their property is not taken care of as well as non subsidized renters.

Have you had better success in the past?

FI Pilgrim
7 years ago

That’s impressive. I like the new “Cash flow” format as well, makes it easy to concentrate on the investments!

7 years ago

I’m enjoying following your journey into the real estate business. I hope the delinquent tenant comes good soon.

Progress Trap
7 years ago

I like the new format. I’d also be interested to see the mortgage lines split into principal and interest to get an idea of how much equity you’re building each month. Keep up the good work!

7 years ago

Why don’t you just let your mortgage company just take care of the taxes?

Also, would throwing the “extra” money at principal be the equivalent of compounding since you are then saving on the interest?

Financial Samurai
7 years ago

Nice work on the cash flow! I didn’t break it down in my passive income post b/c it brings too many variables and don’t want to highlight the value of my properties. Best to keep things low key.

Dang I hate property taxes!

Financial Samurai
6 years ago
Reply to  FI Fighter

Thoughts on why not amortize the property taxes over 12 months to get true cash flow?

7 years ago

Great success here. I am happy for you. When reading about your maintenance expense, one thing crossed my mind, how are you dealing with any future repairs of things not caused by the tenant? Are you creating a fund saving for larger maintenance or repair or is it covered by HOA?


[…] September 2013: $1,932.28 […]


[…] September 2013: $1,932.28 […]


[…] September 2013: $1,932.28 […]


[…] September 2013: $1,932.28 […]