![]() There is always one thing or another going wrong. LessonsĪn older property can be a PITA to own and operate. ![]() I’m pretty sure we will make under $100,000 this year and should be able to use a lot of the offset next April when we file our taxes. We’ll carry forward the rental loss to 2013. Unfortunately, we made too much money in 2012 and are unable to use the rest to offset our active income. For 2012, we were able to use a part of this to offset the income from our rental home. Tax purposeįor tax purposes, we also had a mortgage interest deduction of $10,838 and depreciation of $6,595. It’s still disappointing because my goal was to have positive cash flow in 2012. I would call it even money for 2012 although we had negative cash flow. This is actually not too bad in the grand scheme of things because that’s about how much went into the principle. In short, we had a negative cash flow of $3,614 in 2012. They nickle and dime quite a few things and it adds up. I also underestimated the property management cost. At some point, I would like to start updating the interior and increase the rent. After this, I don’t think there are a lot of big ticket items left, but you never know. This year, we made additional drainage repairs and I just found out that the fireplaces need serious repairs, too. The big repair cost in 2012 was the exterior paint ($5,500) and drainage repair ($2,000). Actually, I did increased the repair estimate, but just not enough. I should have taken this into account and increased the repair estimate accordingly. I think the previous owner was losing quite a bit of money every month so they didn’t want to do any repairs. ![]() The big difference here is the cost of all the repairs. I looked at the statements from the previous 2 years and I came up with $11,354. It’s not a huge difference from the projection. The insurance came in a bit higher than quoted and I also purchased umbrella insurance for additional protection. ![]() We also raised the rent so 2013 should be a bit better here. I assumed 5% vacancy rate and it’s pretty close to what we had. We actually collected more rent that I projected. I’ll put it next to my original projection so you can see how wrong I was. I finally finished our 2012 tax return and I can share the details from the 4-plex now. We purchased a 4-plex through a short sale process in October 2011 and my rental income projection was quite wrong. All information provided is deemed reliable but is not guaranteed by SABOR and should be independently verified.Owning a rental property is one of the most popular ways to generate passive income, but it’s not always easy. Users may not reproduce or redistribute the data found on this site. The information included in this listing is provided by SABOR exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. All information is deemed reliable but not guaranteed. Listing information provided in part by the North Texas Real Estate Information Systems, Inc, for personal, non-commercial use by viewers of this site and may not be reproduced or redistributed. This property listing is offered without respect to any protected classes in accordance with the law. and ZeroDown assume no responsibility for typographical errors, misprints or misinformation. Houston Realtors Information Service, Inc. The information on each listing is furnished by the owner and deemed reliable to the best of his/her knowledge, but should be verified by the purchaser. The information included in this listing is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Houston Realtors Information Service, Inc., ZeroDown and their affiliates provide the MLS and all content therein “AS IS” and without any warranty, express or implied. All information provided is deemed reliable but is not guaranteed and should be independently verified. © 2022 Houston Realtors Information Service, Inc. Information deemed reliable but is not guaranteed accurate by ACTRIS. Real estate listings held by brokerage firms other than this site owner are marked with the IDX/MLS logo. Any information relating to real estate for sale referenced on this web site comes from the Internet Data Exchange (IDX) program of the ACTRIS. The information being provided by ACTRIS is for the consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumer may be interested in purchasing.
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