01 Jul Real monthly numbers from a retired real estate investor
First, I would like to thank u/TNVET for the idea of these updates. He is active in the leanfire community, and post his monthly breakdown. I thought not only would this be a great way to track my own retirement monthly, but some of you might find real life numbers from an actual retired investor interesting or helpful.
Some might want to argue whether or not I am actually retired. I do no day to day work on the business. I have a property manager that handles everything, including handyman duties. I do still look for new investment opportunities, and decide on the game plan when I find one. This is the aspect of the business I find enjoyable, so don't really consider it work, but if you want to count that it will average out to maybe 5 – 10 hours each month.
Okay, now for the numbers.
Gross Rental income – $11,625 (no vacancies, but 3 coming up at the end of the month)
Net rental income – $10,705 (this includes property manager fee and a few minor repairs…taxes will be accounted for when paid at the end of the year)
No new purchases, No sales
Hard money loan outstanding on a flip project in Los Angeles – $50,000 (project is complete, just waiting for it to sell)
Monthly investment into Fundrise $2,000 (all returns are being reinvested) total return since opening account January 2018 is now 19.5% at end of quarter 2 2019
Monthly investment into Dividend Stock account $2000 https://m1.finance/agZC2s8I5 opened in January 2018, total Money weighted return 11.09%
Monthly investment into Leveraged Stock account $2000 https://m1.finance/0QVys8PAH opened in July 2018, total money weighted return 3.97%
Monthly investment into Money Market account $2000. Currently getting 2% interest.
The balance will stay in the checking account to cover upcoming costs of turnover next month.
Possible new investment https://www.zillow.com/homedetails/2012-Moffett-S-Joplin-MO-64804/2083775094_zpid/?
I have an offer on the table for $26,000. Plan to spend about $5,000 on updating to all pex plumbing, $5000 on cosmetic updates which will include removing carpet, replace with vinyl plank flooring, strip wallpaper, texture walls and paint, replace some fixtures, replace broken windows, and a few other minor cosmetic fixes. It has a new roof as of 2017, so that won't need work, but I will need to address possible rain access through the chimney. Wiring is mostly updated, will need a few new outlets and covers. This could be turned into a duplex, but would need to add a second kitchen and decide how I want to handle the utilities. Projected monthly rent $1,000 – $1,100. This could be a good flip project, too. ARV would be in the $120,000 range. Of course this option would require more updates and upfront costs. I'll likely rent it first for a few years and then reconsider doing a final renovation for sell and cashing out depending on what the market does.
Personal expenses for the month (everything except property taxes, which will be a one time expense when paid) I'm sure this is confusing for some people, but I'll explain the low numbers on personal spending. 1) I own my house outright 2) I own my cars outright and only carry liability insurance 3) I self insure for all other insurance 4) I'm just really frugal by nature which includes cooking at home, walking most places within a 3 mile radius, not going out often, etc
$645 (Car insurance, gasoline for cars, cable, water, sewer, gas, electric, cell phone, food, entertainment, misc, one time shopping spree for clothes)
The major one time expense for the month was my crazy trip to the mall which resulted in me taking advantage of several clearance sales. I do buy shoes every year, but I usually try to take care of my clothes so I have a minimum turnover. But I couldn't pass up on some of these deals, so ended up spending about $115 after tax. That was a pair of dress shoes ($10 on clearance $120 list), a pair of Doc Martin type boots( $20 on sale $80 list price), and a pair of extra rugged jogging shoes ($15 on clearance $90 list)…7 v neck moisture wicking t -shirts, ($2 each on clearance, $20 list price) 5 long sleeve shirts (2.99 each on clearance, $30 – $50 list), 3 pairs of jeans ( for $7.99 clearance $40 – $60 list) and two pair of sweat pants ($1.99 clearance $25 list). That is probably more clothes than I actually needed since I still have most of my old clothes, but what the hell, I was on a roll and living large. Probably won't buy any clothes/shoes the rest of the year.
Grey area accounting. I am in the process of selling an old BMW. I have already purchased a truck for hauling things since I didn't already have one and I have way too many cars. When it all shakes out, I should be money ahead, so no accounting has been done on that this month.
Okay, that it is. Let me know if you have any questions about any of this. I know this covers more than just real estate or personal finance, but hopefully members of multiple communities will find it useful.