2 Month Checkup (Tips)

It's been two months since my first investment property purchase. The process has been difficult but very rewarding. I want to share a few things that have been beneficial for me along the way.

I am currently using a platform called Cozy. It handles all the rent payments and directs them to my bank account. I can see who has paid and when the payment was made. I have fantastic tenants that are actually all personal friends so I am very lucky. But... with that being said I would recommend a few things..

Rent Payment:

1. Use Cozy and offer a $15.00 discount on monthly rent if the tenants sign up for Automatic Payments. This depends on how thin your cash flow line is but I think the discount is well worth not having to deal with a monthly reminder for a due rent payment. The tenants don't feel harassed and you don't have to stress about the payment coming in on the first of every month. 

Mortgage Payment:

2. Use the Same Bank Account for rental income and monthly mortgage payment. Some people may not agree with this method but it makes the whole process simple. The rent money comes in and the mortgage payment goes out automatically without any work on your end. 

Side Note: I am currently using Seller Financing but its still the same concept. The rent money comes in on the 1st day of the month and I have set up an automatic payment for the monthly mortgage payment to be deposited into the owners account every month on the 11th. 

Miscellaneous:

I also use Google Docs to make small notes of things that the tenants request or minor repairs that I have made. For example, I bought some water filters and added a French drain around the home and just made a quick note of the purchase and the amount. I haven't filed taxes yet, but just want to have all my ducks in a row. 

The property numbers are..

Monthly Rent- $833.33

Monthly Ins & tax- $68

Monthly Income- $1,050

As you can see.. not a huge cash cow, but building equity and familiarizing myself with the process!