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.
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.
- 37 new rental properties
- 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.
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.