My First Quarter Earning’s & Start-up Cost
Labor: 180-hours (15hrs/wk, $80K median household income) = ($7,200)
Labor includes reading BP(education), looking at properties, going to REI association meeting's, talking to banks, agents, internet research(home, market analysis, comps, etc)
Gas/maintenance on car: ($30/wk) = ($360) (tax write-off)
RE License: ($1000 REC fees + 70 class/etc hrs @ $40/hr) = (3,800) (1,000 write-off)
Association dues: (400) (tax write-off)
Net loss: ($11,760) (minus tax deduction)
$10,000 in labor or my time many do not account for in their profit margins. Hopefully I'll do better in the second quarter once I learn how to lean this out. Learning my market is very time consuming, along with education. I'm thinking my time will be better utilized with my RE license, and networking with local REI associations, and I am learning more about using wholesalers. Right now I still do not feel I know enough about my market or REI to risk buying my first property. I look at it as education, I spent 4 years in college and a lot of years working to make someone else big money, so we shall see I can turn that around.
I forget anything, what is your time worth? Since I do this after my 40 hr work my OT rate is actually over double $40 used and is not a tax write off.
One right deal can turn this around, one wrong deal as I have in the past and seen others do can make this worse!