Miel and I have an investment property in a neighborhood close to our residence. If you’ve ever owned real estate, you know that landlording can have its ups and downs.
Lately, the downs have been more pronounced than the ups. For example, the building we own in recently raised its condo fees by 12%, and levied a special assessment for approximately $1,100.00. The recent super-hot weather in the DC area increased the power bill by about 200% (from 5 to 15 dollars, but its still a lot in terms of a percentage basis). Additionally, the adjustable rate mortgage has increased the mortgage expenses by about $100.00 per month.
These price increases have totally destroyed the units profitability for this year. After taking three months of consecutive losses, our balance sheet is beginning to resemble ancient Rome after the barbarian invasions.
Now, it seems the hot water fixtures in the bathroom of the property have worn out and require replacing. Not only will this cost upwards of $800.00, the contractor I hired to fix the thing is having staffing issues and can’t make keep the planned schedule.
Great.
Not that all is lost, we are planning on refinancing the mortgage on the place and have raised the rent by a modest amount to cover expenses. Things should be fine in the next month or so.
Best,
James
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