Sunday, May 17

No More Drama: I Evicted My Deadbeat Tenant

That was easy:  my tenant moved out, and I didn't have to involve the court system and the associated costs.  Having an empty income-property normally stresses me out.  Today, all I feel is contentment.  Here's why:  my deadbeat tenant paid more in rent in 42 months than I paid to buy the house.

From a financial perspective, this townhouse has been a great investment.  I bought it in 2011 for $22,500. I have spent $11,900 on repairs and improvements (note:  I am excluding mileage from traveling to the property in my costs here).  This deadbeat tenant paid just under $25,000 in rent since moving in.

$22,500 Acquisition
+$11,900 Repairs/Improvements
=$34,400 Cash Out of Pocket
-$25,000 Rental Income
=$9,400 I am out of pocket - and I still own the house free and clear!

What Happens Now?

The biggest unknown is the condition of my property.  I already plan to paint and replace the carpet upstairs, and there will surely be other repairs.  I have called the handyman I used a couple months ago to get started on the house.  I'll be hiring a new management company, which means my hands are nearly clean of the drama I've had with this particular investment.

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