The first half of 2021 has been great for my rental properties. There are no new deals on the horizon for me at the moment but hopefully that will change soon. I’m working on refinancing North, East and possibly South but there are a few variables. One being flood zones which would require flood insurance and the next is if we keep South as it is currently for sale. I’ll have some more info on the refinances next quarter. Here’s last quarters update if you missed it.
Property 1 – Owner Occupied Two Family
I’ve owned and owner occupied this two-family since 2017. All things considered, this property has been great to me. I purchased the property for $75,000 and put 20% down. In late 2019, I was able to get a HELOC on this property for just over $40,000. Here’s the spreadsheet for the first half of 2021 below:
Looking at the spreadsheet, you can see that the expenses got pretty crazy this quarter. I’ve been extremely busy with this place. I put up a fence, built a carport off the garage, replaced all the basement windows, replaced the last of the windows in my unit, installed french doors, built a deck, painted the exterior of the house and garage, built a storage room in the basement along with some other stuff. All of this made this place much more expensive to own for the past half year, but it’s also made it much nicer and more functional. Also, it will alleviate some work for me to do when I move out.
It has cost me an average of $1,032.00 per month to owner occupy this house so far during 2021. Although, I paid $126.26 towards the principal on the mortgage in January and February. I could have owner occupied this house for $989.92 per month without those extra payments. Regardless, this is extremely high. I’ve averaged around $300/month for the past four years.
If/when I were to move out, I would rent my apartment for around $850, still leaving me in the negative based on the first half of this years numbers. I still have some projects to finish up and that means more money to spend, but it’s quickly coming to an end for this year. I have some bigger interior projects I’d like to get done in my unit before I move out of here but that will likely get pushed to next year.
Property 2 – “Cool” Two-Family
I just closed on this property in February 2021. The purchase price was $115k and I put 25% down. I will be referring to this two-family as the Cool property. Here’s the spreadsheet for the first half of 2021 below:
Being the first full quarter that I’ve owned this property, I’m not really sure that I could ask for a better outcome. I’ve had zero issues with the property or the tenants. Cash flow looks awesome so I really can’t complain.
As you can see, this property has earned an average of $468.83 per month so far during 2021. The bigger three bedroom unit is pretty solid but will certainly need some work whenever the tenants move out. I’m not too worried about that unit.
The smaller two bedroom unit is going to need a total refresh whenever the current tenant moves out. The plus side is that the rent will be much higher at that point, at least $200/month more.
Property 3 – “East” Two-Family
We refer to this two-family as the East property. This is the first of three properties from a multi-property deal back in 2018. My father and I partnered 50/50 on this three property deal. We purchased this property for $80,000 and put 0% down. Here’s the spreadsheet for the first half of 2021 below:
Another great quarter for this property. I finally feel like the work and time spent on this property is finally paying off. We just haven’t been able to manage a good year out of this place since purchasing it. This year has been phenomenal so far. The expenses in May came from replacing a kitchen faucet and in June from installing a hose spigot on the opposite side of the house per tenant request.
The property has earned an average of $675.58 per month so far during 2021. I don’t want to jinx it, but this may finally be the first great year for this property.
Property 4 – “North” Three-Family
We refer to this two-family as the North property. This is the second of three properties from a multi-property deal back in 2018. My father and I partnered 50/50 on this three property deal. We purchased this property for $80,000 and put 0% down. Here’s the spreadsheet for the first half of 2021 below:
So far so good here. No issues, no changes. Just another phenomenal quarter for this property.
The property has earned an average of $660.12 per month so far during 2021. This property has done great year after year and I see no reason why it won’t continue to do so.
Property 5 – “South” Two-Family
We refer to this two-family as the South property. This is the third of three properties from a multi-property deal back in 2018. My father and I partnered 50/50 on this three property deal. We purchased this property for $50,000 and put 0% down. Here’s the spreadsheet for the first half of 2021 below:
This is the property that we had for sale. It is temporarily (?) off the market. This property has done great up to this point in the year. Unfortunately, things aren’t going to stay that way for us.
One of the tenants gave his notice and will be moving out by August 1st. His apartment will need to be gone through entirely. This means time, money and no rent coming in during that time. We are planning to finish, or at least get close to finishing, the apartment to decide whether or not we want to keep the property or put it back on the market. If we decide to keep the property, we will rent this unit and hopefully get back on track for the year. If we decide to sell the property, we will leave it vacant until it sells.
This property has cash flowed $635.47 per month so far during 2021. We’ll be losing $800 per month in rent for as long as it’s vacant on top of all the materials we’ll purchase.
If you want to check out last quarters update you can find it here: Rental Property Update – Q4 2020.
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