2013 Results

[Christopher Schmidt]

In 2013, I set out to better track the performance of my rental properties. I wanted to treat it more professionally, at least from a documentation perspective. Here’s the results of my properties, 2 duplexes, or a total of 4 units.

Expenses that were common to the property (the duplex) were just tracked as 50% for each unit. Individual repairs, rents collected and other expenses were charged against the ‘unit’ that occurred the expense.

• Property 1: Unit 1 – Cashflow ROI = 15.42%
• Property 1: Unit 2 – Cashflow ROI = 13.08%
• Property 2: Unit 1 – Cashflow ROI = 21.80%
• Property 2: Unit 2 – Cashflow ROI = 3.56%

Property 1 I acquired in 2011 and took care of some maintenance as necessary early on, so I’m glad to see they both performed consistently this year. Property 2, Unit 2 had the inherited tenant move out, so I took the opportunity to make some cosmetic repairs that I will most likely need to Property 2, Unit 1 when the tenant moves (though I am not pushing them to move out anytime soon).

I actually have zero cash in the properties, so a cash-on-cash return would seem inappropriately high. I thought the Cashflow ROI (amount of net cash flow generated as a percentage of purchase price) would be a more appropriate measure. Though I suppose if you assume I paid for the units in full with cash, the values would be the same.

2014 goals, same results, 4 more properties =)