How to Make 3641 Dollars in 5 minutes

This is a random picture, don't hate

This is a random picture, don’t hate

I know I haven’t spoken about my rental properties in a while, the honest truth was:

I was busy having a daughter.

I was busy releasing a book on improving your credit – How To Fix Your Credit (on Amazon).

I was in the middle of purchasing another rental property.

However…

Remember my last article? You know the one about a landlord’s guide to understand government subsidized housing: Section 8? Yea that one, well this is the fruit of that labor or understanding.

Now that all that busy stuff is out the way, aside from the parenting, let’s talk about real estate again, folks.

My amazing property manager sends me very detailed reports around the 5th of every month.

Since, I get paid in 30 day arrears (1 month behind), in March, I get paid February’s rent and etc etc.

So… what goodies did I get in my inbox for March?

February Rental Income

Keep in mind I/we (wife and I) have 3 rental properties in which I manage with about 5 minutes a month from VA. The rental properties are 700 miles away, and I’m totally reliant on the team I put in place and my PMP skills to run this effectively.

Property 1 Income : $893

This is the full rent amount

Property 2 Income: $2348

We received the full rent amount of $910, plus 2 months back pay from Section 8

Property 3 Income: $400

I’m not too sure why this number isn’t $850. I pinged my property manager on this one… it’s a bit light. My only guess is that Section 8 has yet to start sending their portion of the rent and will owe me back pay.

February Rental Expenses

Property 1 Expenses: Goose Egg – 0

Property 2 Expenses: Goose Egg- 0

Property 3 Expenses: $536.76

We had some minor stuff at property 3. The exact repairs were:

  1. Adjust door strike plates so a few doors could close property
  2. Re-hang bathroom door/cut door down to size
  3. Install 4 new power outlets
  4. Basement floor drain collapsed and needed to be fixed.

Property Management Fees: 10% or $334.10

So how much did you really make in 5 minutes?

After expenses I (I really need to start saying we) made $2740.14 before taxes/insurance/loans

Taxes/Insurance/Loans run around $700 per month, so we really only made $2000.00

I’ll take it… now I just hope we continue to have more zero dollar repair months.

0 comments

  • This is awesome! I want to get back into real estate. After 2008, I stopped investing in real estate and eventually got rid of my real estate. But I have to say I didn’t have the best experiences with my section 8 tenants. If I factored in the time spent and the expenses of fixing certain things and fighting with section 8, I sometimes wondered if it was really worth it. I guess the trick is finding really good tenants. The wrong tenants can bring a lot of stress into your life. I’d also like to add having at least 3 rental properties was on the list of things to do to become a millionaire in the Money magazine some months back. Way to go! 😉

  • Finding good tenants are key. Also I have struck rules.. Once you have $200 in repairs owed to me I file for an eviction. This way.. The tenant never builds up huge repairs that I can’t handle. When the annual section 8 inspection comes, I decide if I want to keep the tenant. My goal is to get 10 rental properties.

  • Sandy /

    Where are you getting a property manager that only charges 10%?!!! Standard is 20%. Love it.

  • Whoa.. I’ve never heard of a 20% standard fee. I’ve been quoted from 6-10% everywhere. I guess my question is where you have to pay 20% for property management??? that’s insane.

Leave a Reply

Your email address will not be published.

top

Teach me how to improve my finances, 

so that I can buy a home

and stop wasting my money on rent