The BLOG! - MD WV HOMEBUYER
2016 Round up and 2017 Goals
Did you write your goals for 2017? I would hope so if your serious about investing in Real Estate. I have several goals related to different aspects of my life. One of those goals includes purchasing 3 rental units that turn out $250 cash flow monthly per unit in 2017. That was a solid goal in in 2016 based on my 2015 year end numbers. So I thought I would put my 2016 numbers together to see how close I came to that goal in 2016.
One thing that I am very diligent about during the year is paying bills every Monday and recording those expenses into a spreadsheet to track income and expenses. This really makes your life easy during tax time. I am able to make a PDF copy and send to my accountant to complete my taxes. Clarity is Power, and having your numbers available to track your progress can make the waters less muddy or if I dare say crystal clear. Having a source of good information to make decision will make life and business easier.
Analysis of the numbers in my 2016 spreadsheet shows that factoring out the acquisition costs for two of the homes I purchased and rehabbed in the second half of the year I cleared $215.95 cash flow per unit per month. I had a problem at one of the homes during the turnover that created a $2100 chimney pipe bill that if I could have avoided that hit I would have cleared $260 a door. My goal for 2017 is $250 for all units. I feel very confident I will hit this goal with increased rents and decreased mortgage payments.
My first goal is to refinance out the private money at three of my rentals that are being held at higher interest rates. This will allow me to reduce the mortgage payments and make that money available again for more acquisitions, all the while increasing cash flow. If I have the equity I planned when I purchased these home I will have to hit the LTV numbers needed to put as little cash in as possible. The general market is appreciating. I hope this help me achieve my goals.
What are your goals? What kind of processes do you use to measure success?