All About Interest

One man's journey to financial independence.

  • About
  • Get Started
  • My Portfolio
  • Dividends
  • Options
  • Real Estate
  • Goals
  • Product Reviews
    • Brokerage Accounts
    • Lighting (LED)
  • Contact

Rental # 3b is Leased

December 18, 2017 by All About Interest 3 Comments

Wait just a second!  How did you have rental #3 if you didn’t buy another rental property you may ask and what is 3b?  Well, ok so here’s what happened.

I decided to call it quits with the restaurant.  The building is wonderful but I just decided the restaurant business wasn’t for me.  So I sold the business but still retained the building.  The tenant I sold the business to didn’t work out and long story short,  defaulted on their 3-year lease after just 3 months.  Yes, I had to evict them, there’s a first time for everything.

In the meantime I’ve rented the upstairs which is where I was living before I purchased a new home in another town about 30 minutes away.  My wife and I are now in a regular home which I think will be better to raise a child in.  Anyways, the upstairs is a wonderful 2,000 sq ft , 2 bedrooms 2 1/2 bath property with all real hardwood floors and awesome updates, granite counters, crown molding and custom woodwork throughout, etc.  I listed the property for lease on Zillow and had 3 people that wanted it within a week.  I realize I may not have asked enough for the property.  I have leased the upstairs of the building for $1,200/month on a 1-year lease.  The bottom floor is where the restaurant was housed and is currently for lease.  I have a few good prospects and hope I can close one before the new year.  I need to get this thing cash flowing!

There’s lots of NEW coming in 2018.  New house, new job, new income sources, plans for aggressively growing my passive income stream!

Here are the numbers on the property:

Unit A – Downstairs, 2 bathrooms plus restaurant – approx 2000 sq. ft.
Unit B (this is what is currently rented) – Upstairs, 2 bedroom, 2.5 baths – approx 2000 sq. ft.

Monthly Liabilities:
Insurance (Commercial Property & G/L): $3011  or $250.92/mo
P&I: $1524.95
Taxes: $614/mo
————————————-
Expenses – $2389.87
Estimated Vacancy & Maintenance (10%): $300
———————————————————————–
Total Expenses – $2689.87
Current Rent: $1200 (Leased until December 2018)
=================================

I’m in the hole $1,489.87 right now.  I plan to have a tenant in the building by January at a rent of $2,000/mo where it’s at least cash flowing.  It’s not a high cash flowing property so I currently have the building listed for sale.

 

The picture is from a trip to Thailand in 2016.  I noticed one of the original bloggers I followed had moved to Chiang Mai and figured I’d post a Thailand pic.  I’m obviously supporting the local beer!

 

Share this:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Google+ (Opens in new window)
  • Click to print (Opens in new window)

Filed Under: Articles, Real Estate

Comments

  1. dividendgeek says

    December 18, 2017 at 6:49 pm

    Nice. Congrats mate!
    dividendgeek recently posted…10-Year Dividend Growers with dividend increase (Dec 11 – Dec 15)My Profile

    Reply
    • All About Interest says

      January 14, 2018 at 5:22 pm

      Thanks Dividendgeek.

      Cheers!

      Reply
  2. Addy Brown says

    April 24, 2018 at 4:47 am

    Any other type of lease or letting out of immovable property (even if it is a residential properly) for business or commerce would be treated as a supply of service attracting GST at 18% rate.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

CommentLuv badgeShow more posts

About Me

I'm a 39-year-old dividend growth investor, wanna be real estate mogul, entrepreneur and dad. Follow me on my journey to financial independence!
$3,130 / $6,000

Total Monthly Passive Income / Goal

Follow by Email

Tweets by @AAInterest

Follow Us On

Follow Us on FacebookFollow Us on Google+Follow Us on TwitterFollow Us on RSS

Most Popular Posts

  • How to Calculate Your New Vodafone (VOD) Cost Basis
  • DIY – How to Install a 3-Way Programmable Light Timer
  • Using Google Docs for Your Portfolio
  • I’m Replacing All My Light Bulbs with LED’s
  • Are Baseball Cards a Good Investment?
  • Milestone – $1000 a Month in Dividends!!!
  • Simple Google Docs Stock Portfolio
  • My Business Plan – All About Interest
  • Dividend Growth vs Dividend Yield
  • Motif Investing Review

Categories

Disclaimer

I am not a licensed financial professional. I created this site to be informative and entertaining. No purchases I make are recommendations to buy those particular equities. I'm not liable by any party for losses you might incur. All investments are subject to losing money and you should consult a financial professional before making any investment decisions.

© 2019 · All About Investing · Site by Nuts and Bolts Media · Privacy Policy