After one month of multi-family property ownership, I can now say with all certainty that I am exhausted.
There have been numerous lessons learned — all experiences that will help me as I continue in this business and acquire additional properties. But it’s been a hectic time as I work hard at my day job, then figure out all of the property details during the hours formerly known as “free” time. Everyone in this business will tell you it isn’t for everyone. I agree. While I know that it is definitely for me, I can also tell you that I now understand the demands and the commitment involved.
The property I purchased had a few vacancies, so immediately upon closing I was advertising the property and showing the units to prospective tenants. I had to establish a process and review applications using the same criteria to make the process fair and non-discriminatory. It took a few weeks to get the leases executed, but now everyone is moved in and getting settled.
Now let’s talk about the money. Oh, the money!
So much money was spent during that first month. A few maintenance items had to be completed. Utilities had to be switched to my name. One unit needed a new kitchen and bath. All the units had to be sprayed for bugs. Every door needed a new lock and deadbolt. There’s more, but you get the idea. There isn’t any way around paying the bills that have come up or the option to not do the work. My optional spending these days is squarely in my personal expenses.
Eating out? Hardly ever. Buying clothes? No. Travel on summer vacation? Absolutely not.
So while my Mint app is trying to keep up with my new spending level, the spending that is happening is spending to maintain the investment. This is business spending. In tax language, these are expenses. These are the costs involved in running a business. I’m not running up excessive expenses, just doing what has to be done to maintain a safe building, keep it insured, make it an enjoyable place to live and protect my investment.
When the first of the month rolls around now, it’s an awesome feeling when people hand me money! Even my bank tellers started asking questions about owning rentals after seeing me make multiple trips to deposit rents. Life sure is busy now, but it’s also very good.
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