Passive Income Offline Real Estate By Levi Share 0 Tweet Pin 0 I have decided to reveal a Cash Flow Statement for one of my investment property. I have randomly selected one of the duplexes from my real estate portfolio. The idea is to expose my total monthly income, total monthly expenses, and total monthly cash flow of the specific duplex throughout the year. A duplex is two-units residential multi-family home under the same roof - either next to each other sharing a common wall, or stacked on top of one another. Since it is considered to be a residential property, one can get a 30 years fix mortgage. This is HUGE!!! By the way, three-unit (sometimes referred as triplex) building and four-unit building (sometimes referred as fouplex, or quadplex/quadruplex) are all considered as Residential Multi-Family.More...In my blog post, "6 key ratios for property investors" I have covered only 6 "important" key ratios to use for real estate investors in order to get the relevant facts and figures about a rental property. However, in his book, "What every Real Estate Investor needs to know about Cash Flow", Frank Gallinelli covers 36 basic formulas to help measure critical aspects of real estate investments. One of the calculations that is critical for a massive success in real estate investing is a monthly cash flow. Table of Contents Cash Flow Statement for the month of JanuaryMonthly IncomeMonthly ExpensesMonthly cash flowCash Flow Statement for the month of FebruaryMonthly IncomeMonthly ExpensesMonthly cash flowCash Flow Statement for the month of MarchMonthly IncomeMonthly ExpensesMonthly cash flowCash Flow Statement for the month of AprilMonthly IncomeMonthly ExpensesMonthly cash flowCash Flow Statement for the month of MayMonthly IncomeMonthly ExpensesMonthly cash flowCash Flow Statement for the month of JuneMonthly IncomeMonthly ExpensesMonthly cash flowCash Flow Statement for the month of JulyMonthly IncomeMonthly ExpensesMonthly cash flowCash Flow Statement for the month of AugustMonthly IncomeMonthly ExpensesMonthly cash flow In the " Cash Flow Statement " table below the following columns represent:Month - the month of the yearTotal Incomes - total incomes for a specific monthTotal Expenses - total expenses for a specific monthPITI: To make my life some what "easy", I have an impound account that is being maintained by the mortgage company/servicer. The idea is that I am sending a payment for the Principal, Interest, property Taxes, Insurance ("PITI" ) in one check and they will apply the money towards mortgage payment, insurance company, and property taxes when they are due .Total Monthly Cash Flow - the formula to calculate it is: Total Monthly Cash Flow =Total Monthly Incomes - Total Monthly Expenses Please note, that the cash flow statement table below can be sorted by clicking the headers of the columns.OOK, drum rolls and let's dive in.MonthTotal incomesTotal ExpensesPiTIMonthly cash flow1 Jan$2,410.00$168.70$1,510.00$731.302 Feb$2,410.00$368.70$1,510.00$531.303 Mar$2,410.00$168.70$1,510.00$731.304 Apr $2,410.00$293.70$1,510.00 $606.305 May$2,410.00$168.70$1,510.00 $731.306 June$1,215.00$121.17$1,510.00 -($416.17)7 July$3,226.47$2,335.09$1,510.00 -($618.62)8 Aug$1,418.87$99.32$1,510.00 -($190.45)Cash Flow Statement for the month of January Monthly Income Rent income from unit A Rent income from unit B Pet Fee from unit B Monthly Expenses Property Management fees for unit A Property Management fees for unit B PITI Monthly cash flowIn the month of January, both of the units were occupied. The monthly rent dues were paid on time. The only monthly expenses were Property Management fees and PITI.The monthly cash flow was $731.30. $ 0 Yearly Cash flow Cash Flow Statement for the month of February Monthly Income Rent income from unit A Rent income from unit B Pet Fee from unit B Monthly Expenses Property Management fees for unit A Property Management fees for unit B PITI HOA Dues - 2021 Monthly cash flowIn the month of February, both of the units were occupied. The monthly rent dues were paid on time. In addition to the "regular monthly expenses" of property management fees and PITI, I have paid HOA due in the amount of $200.Thus, due to the HOA Dues of 2021, the monthly cash flow was reduced to $531.30. $ 0 Yearly Cash flow Cash Flow Statement for the month of March Monthly Income Rent income from unit A Rent income from unit B Pet Fee from unit B Monthly Expenses Property Management fees for unit A Property Management fees for unit B PITI Monthly cash flowIn the month of March, both of the units were occupied. The monthly rent dues were paid on time. The only monthly expenses were Property Management fees and PITI.The monthly cash flow was once again back to "normal amount" of $731.30. $ 0 Yearly Cash flow Cash Flow Statement for the month of April Monthly Income Rent income from unit A Rent income from unit B Pet Fee from unit B Monthly Expenses Property Management fees for unit A Property Management fees for unit B PITI General Maintenance Labor Monthly cash flowIn the month of April, both of the units were occupied. The monthly rent dues were paid on time. As always the monthly expenses were Property Management fees and PITI. However, a general maintenance labor fee for a mailbox replacement in the amount of $125 was charged on one of the units. Thus, the monthly cash flow was reduced to $606.30. $ 0 Yearly Cash flow Cash Flow Statement for the month of May Monthly Income Rent income from unit A Rent income from unit B Pet Fee from unit B Monthly Expenses Property Management fees for unit A Property Management fees for unit B PITI Monthly cash flowIn the month of May, both of the units were occupied. However, the tenant from unit A has provided notice to vacate at lease expiration date of May 31. This means that there will be a "tenant turnover" and some additional expenses to prepare the unit for next tenant/s. The monthly rent dues were paid on time. The only monthly expenses were property management fees and PITI.The monthly cash flow was once again back to "normal amount" of $731.30. $ 0 Yearly Cash flow Cash Flow Statement for the month of June Monthly Income Rent income from unit B Pet Fee from unit B Monthly Expenses Property Management fees for unit B PITI Utility bill -gas Monthly cash flowIn the month of June, only one unit was occupied. The tenant of the unit A moved out. As a result, no monthly rent was collected from that unit. The monthly rent due was paid on time. Since the unit was vacant, the utility bill (gas) in the amount of $36.12 was landlord's responsibility. Thus, the monthly expenses were utility bill, property management fees, and PITI.For the first time, the monthly cash flow was in the negative zone: -($416.17) $ 0 Yearly Cash flow Cash Flow Statement for the month of July Monthly Income Rent income from unit A Rent income from unit B Pet Fee from unit A Pet Fee from unit B Partial deposit B Monthly Expenses Property Management fees for unit A Property Management fees for unit B PITI Commission/Placement Fees Janitorial Expense Utility bills -gas, water, electricity General Maintenance Labor Landscaping Monthly cash flowIn the month of July, I have experienced my first tenant turnover - which means current tenant moving out and the unit is being prepared for the next tenant. The property management company took care of the move-out inspection, getting the property in rent-ready condition, market the property, lineup and screen potential tenants, and finally rent the unit to brand new occupants. Preparing the rental property could involve the following:Professionally cleaning the unitPaying utility billsJanitorial expense: touch ups paint, replace bulbs, secure cabinet door, remove items left behind, replace filter, replace toilet seatsLandscaping including mowing, edging, blowerProfessional carpet cleaning or replacing the carpet if necessaryHouse cleanRe-key locksCommissions / Placement / Leasing feesThe monthly cash flow was in the negative zone this month as well in the amount of -($618.62 ) $ 0 Yearly Cash flow Cash Flow Statement for the month of August Monthly Income Rent income from unit A Pet Fee from unit A Monthly Expenses Property Management fees for unit A PITI Monthly cash flowIn the month of August, I have experienced my second tenant turnover - the tenant from unit B left the unit. The property management team was successful to fill the empty unit A very quickly. In addition, the rent went up by $195 dollars per month.The monthly cash flow was in the negative zone this month as well in the amount of -($190.45 ) $ 0 Yearly Cash flow
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