I know, I know. I haven’t been on top of updates much lately. As part of my New Year’s resolution, I plan to get more organized and start tracking my finances much better. That was, of course, the whole purpose when I started this blog. I wanted to put out there all my investments to hold myself accountable. I haven’t stopped investing and I always keep my portfolio updated but I plan to keep this site more updated in real time with what’s going on.
I hope everyone had a fabulous 2016 and wasn’t too hung over like I was for New Year’s day. On to bigger and greater things in 2017!
To start the year off right I purchased another rental in December. I was looking for one in the east Texas area that would cash flow pretty well. Here, there isn’t as much price appreciation as when I was purchasing in Austin but the cash flows should be better.
My plan is to add two or three additional rentals this year and get plans in place for building storage units for my newest idea, a storage business.
This is rental #2. Below is break-down of what the numbers look like:
3 bed/2 bath brick home – approx 1800 sq. ft
Purchase Price – $103,745
Down Payment – $25,936.25 (25%)
Closing Costs – $2,984.75 (just under 3%)
Repairs – $1255
Total Cash Costs – $30,303.60
Financed – $77,808.75 @ 4.125%
Monthly Taxes – 162.75
P&I mnthly – 377.10
Property Ins/month – $62.17
Total Expenses w/o maintenance – $602.02
Maintenance/Vancancy (20%) – $220.00
Total monthly expected expenses – $822.02
Expected Rent – $1100 (on market for $1200 currently)
Profit before m/v – $497.98/mo
Profit after m/v – $277.98
Cash on Cash Return (before m/v) – 19.8%
Cash on Cash Return (with m/v) – 11.05%
As you can see, if it rents for my expected amount then my returns are looking pretty good. Wish me luck! I’ll keep you updated. Oh and the picture is from Mexico City.