Monthly Portfolio Report: August 2023
One of my goals with Rental Income Advisors is to be as transparent and data-driven as possible with my readers and my coaching clients. I think the best way to build confidence in a new investor is to actually show the numbers, to prove that rental property investing really does work as advertised.
For those reasons, I publish a monthly report on my portfolio’s performance. I hope that this chronological history paints a clear picture of what it’s like to be a remote landlord. It’s also a great exercise for me to be sure I’m staying plugged in to all my numbers.
Here is the update for August 2023. You can also check out all my previous monthly reports and annual reports.
Property Overview
For several months in a row I’ve been at full occupancy, which is great. In fact, I’ve officially had only one tenant vacate this year. But unfortunately, I now have a couple of nonpaying tenants, which will very likely become tenant turns at some point.
Rental Income
Collections are getting a little dicey of late. I now have two tenants who are delinquent on rent:
The eviction at Property #20 has entered its sixth month. The tenant is making every effort to use bankruptcy to forestall their eviction from their home, which you can’t really blame them for. The good news is that if no monies are recovered here, my PM has agreed to pay me all the lost rent during the eviction because this was a recently-placed tenant.
One of the tenants at my duplex (Property #18) has not paid August or September rent, and is not also facing eviction. They have had trouble with timely payments for the 2+ years they have been a resident, so perhaps this is a temporary situation they can recover from.
On top of that, there are an unusually high number of late tenants for September. These happen every month, but there are more than normal this month, and from some new tenants who typically pay on time. These are most often resolved by about mid-month, so fingers crossed that that will be the case in September as well.
Expenses
This screenshot comes from RentalHero, the online accounting tool I use for my portfolio.
Here are the highlights of my expenses this month:
Maintenance & Repairs: After a costly month of repair in July, things quieted down this month — other than a $1,400 roof repair at Property #3, maintenance issues were few and far between.
Property Taxes: For properties where taxes are not paid out of a lender escrow account, I have to pay them directly to the taxing authorities. There are now 6 such properties, and the $2K+ in expense this month represents the annual Memphis property taxes for those homes. (This actually happens twice per year, once for Memphis taxes and another time for Shelby County taxes.)
Tenant Chargeback: A few small maintenance issues were charged back to tenants this month; these costs will be refunded to me after the tenant pays my PM for the charges.
The Bottom Line
My financial model currently projects my Memphis portfolio to generate $8,792 of positive cash flow in an average month. This month, my cash flow was $8,275, just $500 below my projected average. Full occupancy and low repair costs helped me against my pro forma this month, but low collections and property taxes hurt me — so it was about a wash.
Finally, here’s the running tally and graph I update each month. The dotted blue line indicates my projected average monthly cash flow for my portfolio in each given month. I’m still running slightly down on my projected cumulative cash flow for the year:
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About the Author
Hi, I’m Eric! I used cash-flowing rental properties to leave my corporate career at age 39. I started Rental Income Advisors in 2020 to help other people achieve their own goals through real estate investing.
My blog focuses on learning & education for new investors, and I make numerous tools & resources available for free, including my industry-leading Rental Property Analyzer.
I also now serve as a coach to dozens of private clients starting their own journeys investing in rental properties, and have helped my clients buy millions of dollars (and counting) in real estate. To chat with me about coaching, schedule a free initial consultation.
