Monthly Portfolio Report: July 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 July 2023. You can also check out all my previous monthly reports and annual reports.
Property Overview
I continue to be at full occupancy, just as I have been for several months in a row. Still have a nonpaying tenant, however, as I discuss in the section below.
Rental Income
The bankruptcy/eviction for the tenant at Property #20 continues, without much movement yet. This is leading to a $1,095 shortfall in collections each month, which could continue for a while. The very good news is that my PM has already agreed to reimburse me for all lost rent if and when the tenant is ultimately evicted, so all those shortfalls should be offset in the future.
The tenant from Property #23 who failed to pay their full rent in June did much better in July, paying their full rent plus an extra $300, so they’re getting caught up and moving in the right direction.
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: It was a very expensive month for repairs. The big ones were two tree removals ($3K total), and an electric box replacement ($2K), in which the exterior utility connection to the home was damaged, and I had to replace and upgrade it. (That was a repeat of the same issue I paid for at another house in May.) Various plumbing and HVAC issues, along with fees for occupied home inspections, made up the rest.
Utilities: Once a new tenant moves into the home and puts the utility account in their name, I am refunded the security deposit that I placed during the vacancy — this explains why I got a $200 refund this month, related to the vacancy at Property #4 earlier this year.
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 $6,593, more than $2,000 below my projected average. The shortfall was entirely due to the high maintenance & repair costs, which exceeded my pro forma by over $3K.
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. After flirting last month with getting back to “even on the year”, I’m now down about $3K again:
Free Rental Property Analyzer
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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.
