Hello All,
I thought I’d take a break from our current postings on Miel’s impending departure to Afghanistan to talk about another aspect of our financial lives.
In addition to having high powered lifestyles, we also own a modest investment property in Washington DC. If you have real estate, you probably know that as an asset class, it can have its ups and downs. Houses and apartments tend to break down, toilets need fixing, sinks leak, neighbors complain…a huge variety of things can happen to your property. All of them usually end up costing you.
Well, this August has brought some good news. About two months ago, we raised the rent (a modest 5%, from $1,125 to $1,185) and it appears to be paying off. Provided that the rest of the month goes well, we’ll be able to book a $93.00 pre-tax profit this month. Ninety three dollars a month isn’t really that exciting, but given our cash flow over the past 6 months, it’s something to feel positive about.
The past six months have been rocky, in March and April, we got nailed with two repair bills ($450 and $125.86) and in July we were savaged by a back tax bill of $792.93. While the back tax bill was entirely my fault, it still stings to cough up the cash to the city. So, to make a long story short, we’re booking a pre-tax profit of $152.90. Some of this will be withheld for taxes, but it feels good to be cash flow positive.
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