Strategies for turning an investment around...

[Jake Isaac]

I'm sure a lot of you have been in my situation at one point in your investing careers. I own one rental property - a four plex - and I'm beginning to discover that I paid too much for it. It's not a dire situation yet, and I'm not ready to accept defeat because I know there is a way to turn this around and make it work. Do any of you fellow investors have suggestions for a strategy to help drastically reduce expenses?

Here are my facts: 

Gross rents: $2500 (625x4) The first one year lease expires in March '16 and I plan on raising rent by $70 on each unit within six months of that. New gross rents in one year: $2780

Fixed expenses: mortgage $1598, management $200, utilities $200

Things went well for the first two months of ownership. On advice from a "mentor" I calculated after mortgage expenses at 35%. Big mistake. After a roof repair and flood restoration within two months of each other I ended up with nearly $8,000 out of pocket because the rents hadn't been enough to cover those huge incidences. What was originally supposed to be $6000/year cash flow now look a like negative numbers. 

So, besides upping the rent next year and dropping the property manager when his contract expires next summer, what creative ways can I find of upping my income on the property and reducing expenses? 

I look forward to hearing about some experiences! Thank you BP community.