December 2013 Cash Flow Statement

Leverage

I’m still playing catch up and trying to get back up to speed on things. It’s almost February and I haven’t even posted my Goals for 2014 yet. I’m slacking and must snap out of it! Here’s an update on the cash flow income for December.

Without further ado:

December_2013_Cash_Flow

Rental Property #1

Rental Property #1 continues to perform very well. The tenant was current every month for 2013 (and 2012), which leaves an awesome impression on my mind. 🙂 To show a token of my appreciation, I awarded this tenant two gift cards for the Christmas holiday. The first gift card was $100 for dinner at the Cheesecake Factory. The second was a $50 gift card for gifts at Amazon.com. Both expenses show up on this month’s report, but even then, the property still cash flowed over $300, so I’m more than happy to do it.

Rental Property #2

Similar to Rental Property #1, this property has been performing well all year. Granted, this particular property doesn’t cash flow too well, but that’s partially due to the fact that I only put 20% downpayment on this rental. Further, I rented it out below market price. So far, I haven’t regretted the decision because I landed some awesome tenants who always pay on time each and every month. Similar to the first rental, I elected to give these tenants two gift cards for Christmas. The first card was $50 to Black Angus and the second was a $100 gift card to Amazon.com. Having great tenants is very important to me… I will do what it takes to keep them. I believe good behavior deserves to be rewarded.

Rental Property #3

The first floor tenant in Chicago has been outstanding. She has been current each and every month, and that’s always music to my ears. Since she has only been living there for about half a year, I decided to award her a simple $50 gift card to Amazon.com.

The second floor tenant, on the other hand, hasn’t paid rent since October! I’m a pretty patient guy, but even this is starting to get a little ridiculous. All I get are excuses after excuses after excuses. This has got to stop at some point, and we are getting closer and closer to starting the eviction process. Luckily, this is a Section 8 tenant, so a large portion of my rent is guaranteed each month. In this case, 92% of it, so I still collected $1064. Bad news for her, no gift cards!

Overall, I’m still very pleased with the performance of my Chicago 2-flat. Getting over $800 in cash flow is a-ok in my book!

Rental Property #4

I paid the lease up fee last month, so December was the first month where I got to collect a full month’s rent for Rental Property #4. Awesome! It feels good to finally have all properties firing on all cylinders. The tenant paid on time, and there were no maintenance issues this month. So, the only bills were the mortgage/escrow and property management fee. I pocketed over $500 this month which is something I can very much get used to on a monthly basis. Fingers crossed!

Summary

Total cash flow for December was $1892.55. That’s pretty cool, I think. I’m getting closer to hitting the coveted $2000/month mark.

Once Rental Property #5 closes, I should be in well excess of that. By the end of 2014, who knows, maybe we’ll be right on the cusp of $3000/month. Of course, a lot of things would have to go right to make that happen… So, let’s not get carried away and dream too far into the future. Still, $2000/month in the short-term would be a wonderful achievement. Let’s do it!

Print Friendly, PDF & Email
Sharing is Caring:

27
Leave a Reply

avatar
12 Comment authors
Cash Flow Statements (2015 Recap)February 2015 Cash Flow StatementJanuary 2015 Cash Flow StatementEricFI Fighter Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
Leigh
Guest

Sounds like you’re pretty close to being able to call it quits if you wanted to go for semi-FI and find a job with a lower income 🙂 2013 was so awesome that I can’t wait to see what 2014 brings!

CI
Guest

Awesome! Sooo close to 2k!

Martin
Guest

FI,
great income and great progress. Good luck in your 2014 goals! And good luck on closing #5. Looking forward how that changes your cash flow once closed and your first rental starts rolling in.

Fast Weekly
Guest

Looking good FI,
A few more units likes these and you could live in Southeast Asia for a while, and figure out what you want next in your life. By leveraging up you’ve been able to generate a large amount of cash flow in a short time. Good work. Have a great week.
-Bryan

Moneycone
Guest

Looks like you are well on your way to hitting your mark! Congratulations!

Done by Forty
Guest

So inspiring. These are the sort of figures we’re hoping for when we purchase our first rental. Thanks for sharing!

Retire Before Dad
Guest

FIF,
Very impressive numbers here. Inspiring me to get more aggressive on my real estate and borrowing activities. Cool about the gift cards too. My tenants are getting married soon and I want to give them a nice gift.

I just wrote about my real estate cash flow for the first time today. I’m interested in your take if you get a chance to check it out.
-RBD

writing2reality
Guest

Wow, congratulations! Even more spectacular is that even after spending $350 in gift cards, you still hit almost $1900 of cash flow. Fantastic job! Bummer on the Chicago property and the second tenant. Tough call on whether the eviction costs justify the 8% of rent you aren’t receiving. On one hand is the cost issue, and on the other is the principle on not wanting to reward poor payment by letting her stay. Tough call, but at least you are cash flowing nicely!

All About Interest
Guest

You are a cash flow machine! I hope to be able to add another rental this year to compliment my dividend income. How many total rentals are you targeting or a particular cash flow amount? I’m not sure if you mentioned that before.

Dividend Mantra
Guest

FI,

You’re crushing it with the rental income. With that kind of cash flow I’d be highly considering quitting and working part-time and using the increased free time to manage properties and focus on hobbies and relaxation, etc. I can understand you might want to wait a little while, however, because your strategy differs from mine and includes a lot of leverage. With $2k/mo in dividend income my two-week notice is already submitted! 🙂

Keep up the great work.

Best wishes.

Eric
Guest
Eric

Congrats on your progress so far, but I see a very risky view. Why do you let a tenant stay when they have not paid rent since October? As a former Section 8 landlord, and current landlord with 24 renters (and 15K per month in cash flow), you have a very fragile situation. One vacancy or two and the turnover expenses will kill the cash flow for a year. I no longer rent to Section 8 renters. All market based rent. Most all over 700 credit scores, many over 100K in household income, some much higher. In 3BR apartments, 1100… Read more »

trackback

[…] December 2013: $1,892.55 […]

trackback

[…] December 2013: $1,892.55 […]

trackback

[…] December 2013: $1,892.55 […]

Close Menu