2015: My Year in review
2015 has been slower than expected. This was due mainly to my move to Korea which has prevented me from acquiring additional properties. Also, it's quite evident that deals are drying up on the MLS, and I will have to use other methods to find them (e.g., public records, craigslist, and driving for dollars [I'll focus on this]).
Lets look at the numbers for 2015.
Total Properties: 6 (change from 2014: 20%)
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Properties acquired: 1 4-plexes (-50% below goal)
Purchase Price: $60k
Down Payments: $19.8k
Actual Repair Costs: $230.0
Expected Additional Repair Costs: $0k
After Repair Value (ARV): $90 - 110k
Purchased: 33 - 45% below ARV (goal is 30%)
Gross Potential Income: $20.4k
Potential Cash Flow: $702/mo
Potential CoCR: 42%
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Total Invested:
Actual Gross Total Income: $47k
Loss due to vacancies: 60k (mostly STL properties)
Actual Expenses: $38.7k
NOI: 8.3K
Cash Flow: still exceedingly negative :/. One of the properties added in 2014 has been a significant drain on income, and vacancies have been a major problem. The vacancies were due to tenets acquired with the purchase.
Equity: ~$200.1k (+25%)
The good: I was able to pick up and close one deal while in Korea. This took me from 11 to 15 units (36% increase) My projected annual gross income when all properties are stable/rented is right at $107.3k. Also, I was able to get my property in Ohio rented out FINALLY!
The bad: Bad tenets, high "make-ready" costs from tenets destroying the property, and significant vacancies have made this year miserable. Entering into 2016, I have almost got all new tenets and am approaching 80% occupancy.
Lesson: be extremely cautious with keeping tenets who are already in the property without tax records/rent rolls proving history payment.
Time to get back on track 2016! I learned a lot and am ready to make a huge dent and catch up on my goals!
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