02.07.14 Real Estate Results for 2013
Taxes aren't done yet, but 2014 rental financials for our low income empire are pulled together.
Things that went well:
·Higher income and more principle pay down than 2012.
·Waiving less fees less often, collected $350 in 2013.
·Found a cheaper screening company.
·Able to negotiate lower insurance rates. Keep shopping the highest properties.
·Kept a lid on maintenance costs, even with frozen and burst pipes.
Things to improve on:
·Lower CAP rate. We’re hovering near 10; need rents to go up and expensive move outs to go down to land solidly over 10.
·Three nasty move outs in 2013. Cost per move out is now over $2K, and deadbeat tenants owe us an additional $3500 over deposits.
·Higher yard maintenance costs. Bruce was working part of the year, so had less time to cut the lawns himself, and there was a mix up with turning off care in the fall, so they continued mowing into November. Need to find a more ethical yard service.
·Higher water/sewer/garbage. We are keeping more accounts in our name to avoid the delinquencies, but water rates are on the rise.
Comments (5)
Lol
James Wise, almost 11 years ago
I see. What type if income are we talking about in these neighborhoods.? $400/mo rents? Higher, lower?
James Wise, almost 11 years ago
Our lowest end duplexes are $375 for 1/1, $475 for 2/1. We once toured a $30K house we wanted to buy and the tenant was showing off all the upgrades he had done, but he had completely destroyed value with his painting and flooring "skills", so we bailed.
Michele Fischer, almost 11 years ago
Congrats on a good year. Have you ever looked info getting some of the tenants to cut the lawn? You can usually find someone happy to do it for a minimal discount on rent.
James Wise, almost 11 years ago
Hi, James. We have been successful in hiring neighbors or using the local vet program when available, but we try not to have tenants do any of their own work. In our low income area, there is a lot of potential for misunderstandings or different quality standards.
Michele Fischer, almost 11 years ago