Thursday, October 22, 2009

Double Update

I haven’t reported on the Houston apartment complex for the last two months, so here’s a two month recap:

August occupancy was 95% and revenue was $228K or, excluding a payment from AT&T for having them become the complex’s preferred phone provider, $196K.Total cash flow was $40K.

The economic woes hitting the rest of the nation have finally started to creep into Houston, which had been somewhat spared from the slowdown before.

In September, occupancy dropped to 94%. There were 22 move-outs, about half of which were due to the slowing economy and half due to typical reasons – home purchases, job transfers, etc. These move-outs have already been filled thanks to new marketing efforts.

In September, revenue was $202K revenue with a cash flow of $14K. The large drop was due to an escrow analysis by our lender which showed our escrow account was being underfunded for insurance and tax costs. Therefore our monthly payment for our loan will increase slightly and a chunk of cash had to be deposited into the escrow account to bring it in line with estimated payments. This deposit was mostly covered by income we received from AT&T last month for referring our tenant and new tenants to them for phone service, but it does impact the figures for this month.

I also received another quarterly profit distribution.

In other news, I continue to receive on-time payments for my three outstanding hard money loans – hard money #4, #8, and #9.


Bank CD Rates said...

This is great to see that you are so particular about your posts. However, the Occupancy dropped by 1% but the reason is not scary. In addition, reason for move outs is not all and all recession. Half of the move outs are due to some other genuine reasons. Finally, escrow accounts are in balanced situation now. This is the most relaxing factor here.

Top 10 Coolest Real Estate Web 2.0 Sites said...

Its so nice to know that you've discuss the topic clearly. I hope that you would still be able to update us with this issue. Thanks for the post.

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