2012 Goal Reviews and Summary

If I have any readers left, I have been busy with a handful of things and the blog has been left out.

I wanted to post a review of what we did in 2012.

Let’s start with the review of the goals post from last year.

Landlord Goals for 2012

  • December 2012 gross rent collected to be $83,334 or more
50/50: This was probably the biggest stretch goal for 2012.  December 2012 we collected $90,269.78 in gross rent.  This may be considered cheating a little bit because we have partners on some properties.  Our share of the gross rent is 78,215.45.  
  • Add 20+ new properties
PASS: This one was easily covered as we added 37 rental properties and 64 doors to our portfolio in 2012.  
  • Buy 1+ apartment or commercial building
PASS: We bought a 22 unit apartment with 2 partners.  This was by far our biggest purchase of the year.  It need about 75,000 in repairs and the selling bank added some financing to the deal.  
  • Convert all tenants to pay online ACH, deposit at the bank directly or pay by mail

PASS: I am so glad this one was achieved early in the year when we added our full-time property manager.  I have not picked up a rent or seen very many tenants in the last 6 months and I am quite happy about that.  

New Purchases

  • 37 new rental properties
    • 4 condos
    • 28 single family houses
    • 1 two houses on a lot
    • 2 three unit
    • 1 fourplex
    • 1 – 22 unit apartment
  • The most affordable purchase was 39,000 and is rented for $800
  • The average purchase price for the single family houses is $79,500.
Summary
2012 was a great year for us and also a year with a lot of change.  In the second half of the year we really started to notice a ton of additional competition and people actually start to think being a landlord is smart.  This has made inventory tougher to find and allowed values to creep up.  We hired a full-time in-house property manager to handle a lot of the day-to-day issues with the tenant.

As we continue to gain more experience as landlords we have noticed the amount of time and money spent making a new-to-us rental property perform at optimum levels is a lot longer than we originally anticipated.  The performance of our 2009 purchases compared to our 2011 purchases in substantially better.  So we are looking forward to having more and more stabilized units.

The exciting part will come in the next post.  The 2013 goals. God willing, we have big plans. 

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7 Responses to “ 2012 Goal Reviews and Summary ”

  1. Lin says:

    Congrats Steve!

  2. Chuck says:

    Wow…Great year Steve. Thanks for posting all the details. Would like to hear a post on how that conversation went where you converted from picking up rent to an autopay program?

    For whatever its worth – you will always have me as a reader. Don’t get too busy to post on occassion.

  3. Luis says:

    Steve, I have read your blog in the past with great interest and I am glad to see that you are still making progress.

    I am blown away by the amount of properties you have acquired. I still remember when you were writing about House #10…

    I don’t know if you have written about it in the past but it would be great if you could educate us how to go about financing so many properties in such a short time. I assume you use private lenders?

    Keep it up.

  4. Wade Mattingly says:

    Question, you hit your rental income goal. But apparently only did so because you added significant properties. Shouldn’t that be independent of the goal? I want a 10% increase in my rentals from the past year. But I can’t claim to hit that goal just because I added new properties. If I added new properties, my debt expense increased as well. Please tell me I misread this post.

  5. Steve says:

    Wade, the goal was meant to be achieved by adding additional properties not through existing properties. Obviously, increasing net income is the ultimate goal which we also track but I do not publish that number.

  6. Tin says:

    Steve, Yes, you still have plenty of readers left. What an exciting year for you and inspirations for us!!!

  7. Steve,

    “In the second half of the year we really started to notice a ton of additional competition and people actually start to think being a landlord is smart.”

    I think there is more and more competition everywhere. Prices being paid are getting insane!

    I’m glad you are posting again.

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