During the month of January, I received two rent payments for the first time! I updated you about the purchase of my second property at the end of November and this month I received the December rent. So total rent collected this month was $1,520. Here’s a breakdown of each property:
House A
| Item | Amount |
|---|---|
| Rent | $795.00 |
| Mortgage | -$316.67 |
| Insurance | $0.00 |
| Taxes | $0.00 |
| Management | -$79.50 |
| Cash flow | $398.83 |
House B
| Item | Amount |
|---|---|
| Rent | $725.00 |
| Mortgage | -$413.49 |
| Insurance | -$30.58 |
| Taxes | -$72.68 |
| Management | -$72.50 |
| Cash flow | $135.75 |
No problems with either of my rentals. Smooth sailing for the first month of the year.
In my previous post, I discussed how additional payments can be made toward the principal of the mortgage, and in that way you can pay back the loan quicker. I have decided to round up the payment for house B, making my total payment is $600/month, which includes the mortgage payment, insurance, taxes, and an additional $83.25 for the principal. If I continue with these payments, I’ll have payed off the loan by October 2022 instead of January 2025 and save $3,490.
At this point, my REI bank account has a total of $1,579, which is the amount of cash flow I received over the past 6 months (including the additional principal expenses).
That’s about all there is to this month’s income report. Stay tuned for a look into my considerations for house C, next month’s income report, and more.
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