Income Statement – Property #2

Idea Senator had the following comment on my previous post:

Your expense seems kind of high. Can you tell me why and any ways of reducing it?

So, I thought I would break down the income and expenses for Ppty #2. 

Income:  $395/rm * 5 = $1975/mo

Expenses:

Mortgage Interest – $460
Condo Fees – $110
Ppty Taxes – $133
Electricity – $100
Cable & internet – $75

Total Expenses:  $1173

Net Income:  $1097/mo

Mortgage Principal – $295

Cash Flow = $802/mo

So, my yearly cash flow is about $9600, and my net income should be $13164.  Not bad for a $30,000 investment.  The mortgage payments are high because we only have 25% equity in the house, and it is slightly accelerated due to paying for 13 months in a 12-month period because the ‘guru’ who set up the mortgage calculated at 4 weeks per month when determining our weekly payments.

Now… I can’t wait for these 18-years to be up so my interest and principal payments drop to zero and my net income climbs to $18,684/yr.

Any further thoughts on this IS?

NG

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