Rental # 3b is Leased

Wait just a second!  How did you have rental #3 if you didn’t buy another rental property you may ask and what is 3b?  Well, ok so here’s what happened.

I decided to call it quits with the restaurant.  The building is wonderful but I just decided the restaurant business wasn’t for me.  So I sold the business but still retained the building.  The tenant I sold the business to didn’t work out and long story short,  defaulted on their 3-year lease after just 3 months.  Yes, I had to evict them, there’s a first time for everything.

In the meantime I’ve rented the upstairs which is where I was living before I purchased a new home in another town about 30 minutes away.  My wife and I are now in a regular home which I think will be better to raise a child in.  Anyways, the upstairs is a wonderful 2,000 sq ft , 2 bedrooms 2 1/2 bath property with all real hardwood floors and awesome updates, granite counters, crown molding and custom woodwork throughout, etc.  I listed the property for lease on Zillow and had 3 people that wanted it within a week.  I realize I may not have asked enough for the property.  I have leased the upstairs of the building for $1,200/month on a 1-year lease.  The bottom floor is where the restaurant was housed and is currently for lease.  I have a few good prospects and hope I can close one before the new year.  I need to get this thing cash flowing!

There’s lots of NEW coming in 2018.  New house, new job, new income sources, plans for aggressively growing my passive income stream!

Here are the numbers on the property:

Unit A – Downstairs, 2 bathrooms plus restaurant – approx 2000 sq. ft.
Unit B (this is what is currently rented) – Upstairs, 2 bedroom, 2.5 baths – approx 2000 sq. ft.

Monthly Liabilities:
Insurance (Commercial Property & G/L): $3011  or $250.92/mo
P&I: $1524.95
Taxes: $614/mo
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Expenses – $2389.87
Estimated Vacancy & Maintenance (10%): $300
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Total Expenses – $2689.87
Current Rent: $1200 (Leased until December 2018)
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I’m in the hole $1,489.87 right now.  I plan to have a tenant in the building by January at a rent of $2,000/mo where it’s at least cash flowing.  It’s not a high cash flowing property so I currently have the building listed for sale.

 

The picture is from a trip to Thailand in 2016.  I noticed one of the original bloggers I followed had moved to Chiang Mai and figured I’d post a Thailand pic.  I’m obviously supporting the local beer!