To see the previous month, please refer to this link https://www.reddit.com/r/realestateinvesting/comments/ck9qm6/monthly_budget_breakdown_from_a_retired_real/
A whole lot of stuff happened this month, so I'll do my best not to turn this into a novel. Bought a new investement property for myself, and I'm currently working with 2 out of state investors to help them get their first cash flowing rentals in my area. Both of those deals should close next month.
Okay, now for the numbers.
Business Income, Investments, and Expenses
1) Real Estate
Gross Rental Business income - $18,000 (no vacancies, 2 were filled at the beginning of the month, this also includes a down payment of $6,625 for a property I'm selling as a rent to own)
Net rental business income - $4,025 (Huge expenses this month! Had to dig out a sewer line all the way from house to alley on a house with a big back yard. That was about $4k. Also had to pay income taxes for 2018, which came to a little over $7k...also had a several minor repairs and had to pay for a dumpster/cleanup/repairs afer a long term tenant left us with a big mess after several years of accumulation. Luckily my crew was on top of things and we were able to do the needed work and already have it rented again. Still, had a total of almost $14k in business expenses this month!!)
One new investment property purchase as outlined here https://www.reddit.com/r/realestateinvesting/comments/cqadg8/new_deal_breakdown_on_hall_st/
My total purchase price was $16,170...renovations will start early next month. Renovation costs will be on next months breakdown.
Hard money loan outstanding on a flip project in Los Angeles - $50,000 (project is complete, just waiting for it to sell. Finally had some offers come in late this month, so we are expecting to finally get this thing off the books next month and get that money back...hopefully with a little profit)
2) Investments
Monthly investment into Fundrise $2,000 (all returns are being reinvested)
Monthly investment into Dividend Stock account $2000, all dividends are being reinvested
Monthly investment into Leveraged Stock account $2000
Monthly investment into Money Market account $3000. Currently getting 2% interest.
The balance will stay in the checking account.
3) Possible deal on the table for upcoming month
I am working with 2 out of state investors to help them purchase a couple of duplexes. Hopefully both of those deals will close next month.
PERSONAL EXPENSES
Personal expenses for the month (everything except property taxes, which will be a one time expense when paid) I'm sure this is confusing for some people, but I'll explain the low numbers on personal spending. 1) I own my house outright 2) I own my cars outright and only carry liability insurance 3) I self insure for all other insurance 4) I'm just really frugal by nature which includes cooking at home, walking most places within a 3 mile radius, not going out often, etc
The goal here is to spend less than $800 a month.
$905 total
Breakdown:(all cost rounded up to nearest $5)
Car insurance $60
Gasoline for cars $0
Cable $70
Water/sewer/trash $60
Gas (heat) $30
Electric $70
Cell phone $35
Food $150
Entertainment $70
Misc (one time purchase of electronic devices $60)
Averaged 3 month Medical expense $100
Averaged 6 month truck purchase cost $200
Not happy I went over budget here. Everything was looking fine until I blew the amp for my home theatre subwoofers. That was a very expensive amp, so a direct replacement wasn't going to happen anytime soon. Luckily I had a backup amp I could use, but I needed a few things to make the conversion work so ended up spending $60 on Parts Express to get everything. I also had a much higher food and entertainment budget than normal since I did a little entertaining this month. And of course, what really blew my budget was the two expenses carried forward from previous months. That $300 really ruined my budget this month. To see the details of why those are accounted for that way, see the previous month breakdown.
OTHER
Misc. income
Payment for truck sold to handyman $100
Total $100
Grey area accounting.
Most of the Grey area is already above. The big one this month are the new property purchase. Should that be counted against the rental income as a rental expense? Maybe, I don't know. So it got its own category. The funds for that came out of the bank account and a small transfer from my money market.
I guess the income taxes are a bit of a grey area too. Since they are based on the business, I accounted for them as a one time business expense against the monthly rental income.
On the personal side, deciding to account for the truck purchase I made for my handyman as a personal expense came back to bite me in arse. Oh well, at least I got $100 this month in misc. income from it! Lol. I can't complain too much. Even with all the craziness from this month I didn't blow the goal budget by too much.
Okay, that it is. Let me know if you have any questions about any of this. I know this covers more than just real estate or personal finance, but hopefully members of multiple communities will find it useful.
[link] [comments]
source https://www.reddit.com/r/RealEstate/comments/cxzubt/august_monthly_breakdown_from_a_retired_real/
Comments
Post a Comment