It's really unfortunate timing, because we've got a long year to go and I at one point had many great and luminous cooking plans for it, but they're all cancelled now because on the afternoon of January 4th, before 2019 had really even kicked in, I ate the best thing I had or will all year or maybe ever - because what would the internet be without some unnecessary melodrama - and I threw it together from a mess of leftovers in my fridge. Don't you hate it when those lifestyle guru-types tell you about the meals they threw together from their leftovers, which just happen to be in tip-top shape, chromatically balanced, and Instagram-perfect. In real life, or at least mine, leftovers are a lot of Let's Never Speak About That Again, the best of intentions cut short by poor planning, the now shamed and guilt-ridden humans responsible for the disgrace vowing to do better by that murky bag of herbs and liquefied cucumber next time. But not last week. Last week, on January 1st, I made David Chang's Bo Ssam, something I do once a year or so when I want to make a jaw-dropping feast for a crowd with exactly three ingredients (pork shoulder, salt, sugar) even a person living through the aftereffects of an evening of daquiris can handle. Of course, because most three-ingredient recipes are a lie, there are a few other things you make to serve with it: a Ssam sauce (it's like a vinaigrette), a ginger-scallion sauce (a riff on the classic Cantonese sauce), rice, and I always like to serve it with marinated julienned carrots and thinly sliced cucumbers so needless to say, these leftovers were well above-average. Bo Ssam makes a lot; we ate it on the 1st, the 2nd, and the 3rd before we were finally out of pork, but I still had a smidge left of everything else so for lunch on that 4th day of the year, I put it all in a bowl and topped it with a crispy fried egg.
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Have you heard of 'smudging'? I started smudging my home about 3 years ago – my husband thought that I was a bit crazy but after the first time I smudged our home he noticed a difference too! Smudging is a common practice in feng shui and many Native Americans as well. You will also hear followers of alternative healing mention speak of this practice, too! In short, it involves burning certain herbs (I will explain more about the types of herbs , keep reading). The smoke from burning these herbs will fill the air and it helps to clear out negative energy. Don't be intimated by the practice – it's quite simple! The benefits of smudgingI try to smudge my home once a month but we are a busy family and if I'm being totally honest it doesn't happen every month. One routine I do try to stick to with this practice is – to smudge after having guests over. Why? People carry energy with them and you never know what energy they are surrounded by….so we like to clear it all out! Photo credit: Apartment Therapy
Everytime I smudge my home we all notice a big difference. Everything in the house feels lighter. If you want to read more about the practice and it's benefits – I found this article to be very useful – 8 Reasons You Should Try Smudging How to smudge and what you needThere are different herbs that can be used to smudge and they all deal with different aspects that affect your home's energy in a negative way. Cedar is said to be calming, purifying, comforting and protect. Juniper is clarifying, cleansing, helps with focus and centering. Pine is for renewal, strengthening and cleansing. Sweetgrass is for healing, purification and encourages positive energy. Sage is for clearing negative energy and encouraging balance. Personally I use White sage most of the time. If you are wondering about the smell when you cleanse your home with buring white sage – I don't mind it (it smells a bit spicy, like Christmas spices). Photo credit: Cedar Lake You will need a bundle of dried herbs also known as a 'smudging stick'. You will also need matches, a candle and a fireproof bowl (if you look online you will see a lot of sheels being used but any fireproof bowl is fine). Some sand – you will spave it in the fire proof bowl (I don't always use sand, to be honest). You might also see feathers used in smudging. You don't have to use one (I don't) if you carry the smoking herb bundle (aka smudge stick) around the home with the fireproof bowls in the other hand (to catch any falling embers that's just fine). I also keep my windows open while I smudge the house – this allows the negative energy to be released from the home. I'm not sure if this is how everyone practices but this is how I was taught. So how do you smudge your home?Start by getting out all of the supplies you need. Next light your candle with a match – you will use the candle to light the smudge stick. It's not a torch you want it smoldering. So once lit wave it around. Be sure to have the fireproof bowl under the smoldering smudging stick – for safety reasons and for catching embers that may fall off. I circulate around my home – smudging room by room and waving the smudge stick around (some use a feather to circulate the smoke but I like to keep it simple). Be sure to focus on corners – it is believed that negative energy 'sticks' in the corners of a room. Pay attention to all rooms not just the main or mostly used rooms – laundry rooms, closets and even the garage can have stagnant energy. So now that you have circulated around the entire home – you need to conclude the session. You will put out the smoldering sage stick in the sand in the fireproof bowl. You can keep the candle burning (I ujsually do for anothwr 30 mins or so). When it comes to smudging be sure to set aside enough time – this process shouldn't be rushed (15-20 minutes is usually enough time – the time depends on the size of your home). Shop – Home SmudgingPack of 3 Smudging sticks (white sage) – this is the one that I like to use! Smudging stick with copper bowl and sand Smudging your home is a great way to start the new year – a clean slate, a clear energy in your home and peace of mind. I will be smudging this week and I know you will enjoy this practice too! The post How to smudge your home appeared first on interiorsbykiki.com. If you're looking for a unique way to make your landscaping more inviting this year, a fire pit may be just what you need! Fire pits are a great way to add an element that will be loved by your entire family, and they can be used all year long. With a little creativity, you may find that your new fire pit becomes the center point of numerous new family traditions you'll treasure year after year. CookingIs there anything that helps create a feeling of nostalgia like cooking over an open fire? From hot dogs and s'mores to more complicated dishes, cooking with fire can be a delicious way to bond with your loved ones and make memories you'll cherish. Plus, if you're hosting a large gathering, a fireplace with a grate can become a vital cooking service for help feeding the crowd when your stove and grill aren't enough! WarmthWhether it's a chilly summer night, the fresh air of fall, or a frigid winter evening watching stars in the snow, your backyard firepit offers a warm spot to drink a cup of tea or cocoa. Even in early spring and into fall, a daytime fire pit can help extend the season of your backyard parties. MoodThere is little that can beat the instant mood enhancer of a crackling fire. Depending on the setting it can inspire feelings of summer fun or winter warmth. Even those who aren't great party hosts will have an instant focal point and conversation generator when they add a firepit. EntertainmentBecause firepits are a natural gathering place, they can be the basis for all kinds of family entertainment. Depending on the type of gathering you're hosting, you may try out a few different kinds of fireside play, stargazing is a great start. Additionally, if you have family or guests that are musically inclined, your fire pit can make for a great jam session setting. With family and small children, you might also try a fireside storytelling tradition. When you add a versatile and stunning fire pit to your home landscape, the options are endless. CALL IN THE PROFESSIONALS FOR YOUR LANDSCAPING NEEDSEVERGREEN GENE'S OFFERS PROFESSIONAL LANDSCAPING AND MAINTENANCE SERVICES THROUGH THE STATE OF MARYLAND. WE ARE HERE TO MAKE SURE YOUR GARDENS AND GROUNDS LOOK AS BEAUTIFUL AS POSSIBLE YEAR-ROUND. INTERESTED IN HOW WE CAN HELP YOUR GARDEN LOOK ITS BEST? GIVE US A CALL AT (410) 766-6877 OR VISIT US ONLINE. TO SEE EXAMPLES OF OUR WORK AND GET MORE HELPFUL GARDENING TIPS, FOLLOW US ON FACEBOOK, GOOGLE+, PINTEREST, LINKEDIN, HOUZZ, AND TWITTER. I always get a little nostalgic at the beginning of a new year and enjoy reflecting back on the year that has past. As always, I continue to be amazed at the opportunities that this blog provides for our family and I'm so grateful for everyone that has supported me on this blogging journey. This blog would be nothing without YOU! Top Blog Posts of 2018I'm continuously looking for ways to improve the blog and serve you guys better. It totally makes my day when you email me or comment on my posts and I absolutely LOVE getting your input. Since I don't always hear from you though, I often look at what posts are the most popular and try to plan some additional blog content around those topics. Sometimes it surprises me! This year, many of your favorite cleaning tips and organization posts from years' past continue to stay in the top 10, along with a couple of fun holiday projects. The home decor posts didn't quite make it into the top 10 but they were close! So here they are – the top 10 blog posts of 2018! Number 10: The January Decluttering ChallengeIf you're ready for a clean and decluttered start to the new year, join in my January decluttering challenge! I know many of you joined me last year and I hope even more join in this year. The post has been updated with all of the 2019 free organization printables for you, so feel free to join in. It's never too late! Number 9: Family Binder Budgeting PrintablesIf you're looking to get your budget on track after the holidays, these printables are a great way to keep track of where your money is going. Get started on the road to financial success! Number 8: Turkey TreatsThese little turkey treats have been a Thanksgiving favorite for a few years now and they've received over 15 million views on my Facebook page! Number 7: Eleven Daily Habits to Keep Your House Clean and TidyIt can be hard to keep up with all of the daily cleaning around your house, but these simple habits can make it so much easier! Number 6: How to Clean Upholstered Chairs and Other UpholsteryIf your upholstery is looking stained and dingy, give these cleaning tips a try. You'll be amazed at how clean they can get! Number 5: How to Remove Burned Food from PotsThis is always a favorite – especially after the holidays! This tip works great for really bad burned on food as well as just a good pot cleaning after a busy cooking season. Number 4: Ten Things to Clean After the FluNo one likes it when the flu comes to visit! Follow these cleaning tips to get your home clean and disinfected, and help it from spreading to everyone else in the household. Number 3: Popsicle Stick SledsThese are one of my favorite craft projects and I love seeing how everyone puts their own spin it! I even added some popsicle stick skis this year! Number 2: How to Organize Bills – Bill Payment Tracker PrintablesI've used these bill tracking printables for a few years now and I have found them SO helpful! Now that many of our bills are just sent electronically I find them even more helpful to keep track of what I have {and haven't!} paid.
Number 1: How to Clean your Washing MachineThis post has been my number one post for 4 years running! There are lots of helpful tips to get your front loader looking and working its best. You might just love your front loader again! And there you have it – the top 10 blog posts of 2018! Thank-you again for such a wonderful year and I look forward to connecting with you more in the year ahead. As always, please let me know if there are any specific post ideas that would be helpful for you. I love to hear from you and I hope that we can continue to build this little community together. Top Home and DIY Bloggers Best PostsIf you're looking for more home and DIY inspiration, please take a minute to check out my DIY and Home blogger friends' top posts from 2018! This is the very best the web has to offer and you're sure to find some amazing ideas! TIDBITS | Miss Mustard Seed | Farmhouse on Boone | Maison De Pax | A Burst of Beautiful Simply Designing | Bless'er House | Taryn Whiteaker Designs | Designthusiasm | Unskinny Boppy Live Laugh Rowe | Kendra John Designs | House by Hoff | So Much Better With Age | Life On Virginia Street ZDesign At Home | Town and Country Living | Shabbyfufu | Happy Happy Nester | Stacy Risenmay Cherished bliss | Clean and Scentsible | anderson + grant | The Happy Housie | Summer Adams Decor Gold Designs | Maison de Cinq | Seeking Lavender Lane The post Top 10 Posts of 2018 appeared first on Clean and Scentsible. Finishing the basement in your home is a great way to maximize the space you already have, without having to add on any square footage in the form of an addition. Whether you want to go the more luxurious route and turn your basement into a home theater, or you're simply looking for a way to create more living space in your home, finishing your basement is a great way to do so. However, there are a few things you'll want to keep in mind for a successful basement remodel. Below, we cover 5 tips to get you started. While I was out of the office between Christmas and New Years I spent a good part of my down time away from my computer, and I tried to limit screen time on my phone, too. Instead of keeping up with things on the web like I do most every other day of the year, I spent most of my days off with John shopping, taking neighborhood walks, and eating out. That said, I still allowed myself a little Internet leisure time. Scroll on to see what stood out during my holiday vacation! Weekend Inspiration: No. 431. We started working on another big living room makeover over winter break using almost entirely different furniture-the catch was that we wanted to only use pieces that we already owned so that it cost next to nothing to do! More on that soon, but the one thing we did buy for the space was this double wall sconce. I can't wait to share the before and after with you. 2. Another thing I freshened up over the holidays was my Instagram feed. I unfollowed a handful of profiles that no longer inspired me (or that I realized were actually bringing me down), and subscribed to a whole bunch of new people to reignite me motivation to try new things. One stand-out favorite is Jenny Komenda. She just started a new home renovation project and shared an amazing walk-through on IGTV. It's a must-watch! 3. I also discovered Hermione Chantal's YouTube channel around New Years, and am totally hooked on her home reno, too. 4. Speaking of good TV, have you tried watching the new Marie Kondo show on Netflix yet? I've seen one episode and thought it was pretty good. Kind of an unusual format (I didn't realize she spoke very little English!), but worth a watch if you have time this weekend. 5. I'm so intrigued by the clothing challenge that Elsie Larson announced on A Beautiful Mess in early January. Do you think you could do it? I might try it out. 6. I added a few new books to my collection around Christmas, including this one by one of my favorite novelists of all time, this one (admittedly a guilty pleasure read!), and this one. Let me know in the comments if you'd recommend any others in honor of the new year. *I earn a small percentage from purchases made using the affiliate links above. Affiliate links are not sponsored. Rest assured that I never recommend products we wouldn't use or don't already love ourselves. The post Weekend Inspiration: No. 43 appeared first on Dream Green DIY. This article originally appeared in the October 2018 issue of House & Home When we think of kitchen furniture, what comes to mind is tables and chairs or counter stools and not much else. But, if you were a fashionable bride in Canada or the U.S. in the '20s or '30s, chances are you would have asked for a Hoosier cabinet for your first kitchen. This indispensable storage closet would become the centerpiece of the room along with your stove, kitchen table and chairs, fridge and the white enamel sink hung on a wall, hopefully under a window (below). These pieces were part of the category of kitchen furniture common until the late 1950s. The Hoosier Manufacturing Co. of New Castle, Indiana, was one of the earliest and largest manufacturers of these cabinets, hence the affectionate name: Hoosier cabinet. The company sold millions and soon Hoosier cabinets were being made by furniture makers all over North America. You could even order them from the Sears or Eaton's catalogue. They could be basic or elaborate, made of wood and glass or enamelled metal. They were always up on legs to help keep food away from rodents and usually included a practical work surface. Fast-forward to the '50s onward, when sleeker built-in kitchens became the new ideal in North America. New postwar suburban homes featured built-in lower cabinets with laminate counters and closed uppers. I remember my own modern home had counters with rounded edges, a built-in laminate dining table that swivelled and a pass-through with its own counter. I hated it. But not as much as what was to come: overbuilt reproduction wood kitchens with miles of carved wood doors, built-in islands and way too much granite. The past two decades of sleek Euro-style kitchens and simple Shaker-style country kitchens have been so much better. But for me, they still lack the charm of the old unfitted kitchens of the prewar days. My own response has been to design custom kitchens with open work tables and cabinets that resemble freestanding furniture. But that is an expensive and often impractical solution. A few fine, artisanal workshops like March, Henrybuilt and Bulthaup have for some time made exquisite kitchen furniture. We've featured them (April 2012 and September 2013) but knew that they were out of reach for many of us. Happily, for the first time, there are now fabulous options for kitchen furniture available in a wide range of prices. Bulthaup dazzles with its new b Solitaire line (above). All the pieces have finely crafted, matte black aluminum frames, solid oak or glass tops and shelves that can include carved niches for special tools. There are dining tables and benches, shelving and small side tables. From deVOL Kitchens comes an exciting new collection based on mid-century style called the Haberdasher's Kitchen. Just take a look at the island made of natural stained oak and glass, with copper ends. It has rounded corners and tapered legs and features glass-fronted drawers and cabinets and a marble or copper top. Also in the line is a marble sink with a fluted front made from a solid block of Carrara marble. This is kitchen furniture for the connoisseur. Most exciting of all is a new line made here in Canada that offers clever kitchen furniture in modules that can be configured to fit your room. The company is Cuisines Steam, and the line is called coquo (above). Each component is available in natural white oak or dark espresso-stained oak. There are options for glass-fronted cabinets, marble or granite countertops, work tables, islands, sink units and vanities that work in both kitchens and bathrooms. The designers of this Montreal company have filled a much-needed niche in a growing market by offering clean, modern design with the character of fine furniture, at price points that are reasonable. You can go online to cuisinesteam.ca and see the broad range of components and the dimensions of each. Finally, consider mixing in freestanding units like the French Kitchen island from Crate & Barrel. I love the matte metal base and polished white marble top, reminiscent of an old French patisserie. Of course, if you really want to bring old world character into your kitchen, keep your eyes open for a vintage Hoosier cabinet - back in vogue after only 100 years, and just in time… The post Lynda Reeves On Today's Hot Trend In Kitchen Furniture appeared first on House & Home. Maybe, after watching Tidying Up with Marie Kondo on Netflix, you decided you needed to overhaul your laundry situation ASAP. Or maybe “wall cabinets for laundry room” has been on your wish list for a while now and 2019 is the year you finally check it off! Either way, home organization is a common resolution and the best way to achieve it is by setting small, actionable steps you can actually accomplish. Here are three things you can do to spruce up your laundry room this year.
Laundry detergent is a bulky buy, so most homeowners only keep one in the house at a time and replace it when they run out. While storage savvy, this approach sometimes leaves us in a pinch. Like when we turn on the washer only to learn we're out of detergent. Oops! To avoid running out of supplies right when you need it, store liquid detergent in a beverage dispenser - clearly labeled, of course. Whenever you want to find out how much detergent you have left, you can simply lift up the top and take a peak. For powder detergent, use a clear jar with a wide brim. This will allow you to easily scoop the product out when doing a wash, and keep your eye out for low levels. While storing detergent this way is convenient, it's also cute! If you want your laundry room to be more aesthetically pleasing, this is an easy swap that can really make the space more stylish.
When you have wall cabinets for laundry room essentials like soap and dryer sheets, it makes washing clothes a million times more enjoyable. You no longer have to use your appliances as shelves and can finally keep things in order. You can also utilize the space in your laundry room cabinetry for any clothing related items, such as an iron and hand steamer. Having everything in one place really helps to streamline chores. Storage hacks, like installing a fold out drying rack inside a cabinet, also help to make the most of your laundry room - even if the room is on the smaller side.
Having a very specific plan in place can help you keep your resolutions all year long. You need to make changes that can become routine. One way to do this in the laundry room is by designating a specific spot for like items. Your laundry room is probably home to more than just laundry supplies, which is totally fine. Just make sure any miscellaneous items have a proper place. Use plastic storage bins and caddies to keep similar things together. For example, kitchen cleaning supplies in one bin and stain removers in another. When each thing belongs somewhere, you are more likely to return it there and maintain organization. You can even label your storage bins and caddies for added reinforcement! At The RTA Store we help make your dream home a reality with RTA (Ready To Assemble) and Pre-Assembled cabinets and accessories. Whether it's your kitchen bathroom, laundry room, home office, bar room or TV room, we offer the same (if not better) quality you would find at any retail store, but for a fraction of the price. Stop by our website or give us a call and let us make your dreams come true with the help of our free room design tool!
Everywhere we look these days, it seems everyone has trendy painted cabinets in their homes. Or, at the very least, popular image websites would have us believe… the thing is, painting cabinets may not be the best long-term solution for a cabinet renovation. Cabinets You Shouldn't Paint Over… And Why Detailed Patterns, Warped or Damaged Cabinets If your cabinets have detailed patterns or they are warped, chipped, cracked or have other damage to them, then painting your kitchen cabinets is not the way to go – it most definitely won't solve your cabinet problem. There is also an excellent chance the paint will crack at the joints from expansion/contraction of the wood. Open-Grained Wood Cabinets If your cabinets are made from open-grained wood, this is advised against for painting. Open-grained wood looks much rougher and rustic, possibly with holes and grooves, which means they will need a filler to even them out… which means yikes – not a fun project. If your cabinets are made from poplar, they probably have a few dents in them. This is because poplar dents and is not a great choice for painting – unless you want to showcase those dents. Hard Maple & Oak Cabinets Cabinets made from oak-also an open-grain-should never be painted. Once painted, the open grain of oak will give your cabinets an orange peel appearance and feel to them. Hard maple cabinets are another one to avoid painting as they change with the humidity and cooking can wreak havoc on these cabinets. Non-Wood Material Cabinets Cabinets that aren't solid wood-those made of stainless steel, vinyl, laminate, engineered wood, or any other non-solid wood material-are a much bigger task to undertake as they aren't as easy to paint. Paint will not adhere to the finished cabinet surface easily and will often peel off or chip. The best cabinets to paint are tight-grained wood cabinets, however, they are not always easy to come by. Things to Avoid When Painting Cabinets We're making it simple for you and giving you a checklist of what not to do and what not to use… so if you are set on painting your cabinets, please keep these tips in mind:
Hopefully, these tips and tricks make your decision on saying yes or no to painting your cabinets. If you are looking to replace your cabinets, find ready-to-assemble and pre-assembled cabinets online at The RTA Store. It's time once again to do our annual rental property cash flow analysis. To see previous years, visit the link at the bottom of the post. Twenty-eighteen was another challenging year for our rental property: 100% occupied (thankfully), new contract negotiations, and major water damage that ruined the wood floors! If you're new to my recaps, this is property is our old personal residence – a Frisco, TX townhome we purchased in 2007 and converted to a rental property in 2012. We bought it for $205,000 and put 20% down. We now owe $137,000 on it and the value is listed as $324,000. We manage this property ourselves: listing it, vetting tenants, managing repairs, rent collection, and raising rent. You can now add 'dealing with a major insurance claim' to that list.. It's been a very positive experience overall, especially if you consider we're somewhat accidental landlords. In summary, this year was our second best yet! Thankfully we kept our tenant through contract negotiation (we signed another two-year lease in June) and we were able to slightly raise the rate (woot!). Why? Because we had a major flood issue, had to make an insurance claim, and had to comp a month's rent because of the delays in repairs. Other than the major repair, we had our annual A/C checkup and a roof leak that needed addressing. It was brand new when we purchased it in 2007 and we made no repairs last year so we were due for a few it seemed. And hey, at least we got brand new floors! We chose wood tile this time – super durable. Let's look at the specific numbers: 2018 Cash Flow Analysis2018 Rent Collected
Total Rents Collected $24,085.00 by check Rents were solid this year other than the one month we had to comp. No vacancy (yay!) and we did take advantage of the new lease agreement to raise the rent slightly – just $25. Thank goodness we did, HOA dues are set to go up by $35 this year. 2018 Expenses Paid
Total Expenses Paid $19,766.65 Expenses got out of hand a bit. Thank goodness the insurance proceeds exceeded the cost of the floor repairs. The difference allowed us to absorb the increases in taxes, insurance, and that silly leak detection fee. Total Cash Flow $4,318.35 Boom! Not too bad. I honestly thought we going to be much closer to breaking even this year. I think this shows that we're poised for a strong 2019 with the property. I wouldn't be surprised to see another $5K+ year. Our cash flow through the years:
What's next? This next year I'm expecting to be a quiet one for the rental property. Our tenant is great and we expect that to continue. We're planning on paying off our personal mortgage in 2019. Once that happens that will leave us with the decision to possibly pay off the rental property mortgage. Mrs. PT will want to, I know it. We'll see. But how cool would it be to turn this property into a $15k a year income source! Do we plan on getting into more rental properties? No, not at this time. I've been putting a little money into PeerStreet (you can see my review here), otherwise I'm spending my time, energy, and on my businesses. Do you have a rental property? If so, how did yours do this year? If not, have you ever considered it? To see previous year's click show 2018 Cash Flow AnalysisIt's time once again to do our annual rental property cash flow analysis. To see previous years, visit the link at the bottom of the post. Twenty-seventeen was the absolute best year ever for our rental property: 100% occupied, no major repairs, not a peep from our tenant, and the biggest cash flow amount ever! If you're new to my recaps, this is property is our old personal residence – a Frisco, TX townhome we purchased in 2007 and converted to a rental property in 2012. We bought it for $205,000 and put 20% down. We now owe $140,000 on it and the value is listed as $330,000. We manage this property our self: listing it, vetting tenant, managing repairs, rent collection, and more. It's been a very positive experience overall, especially if you consider we're essentially accidental landlords. In summary, this year was made great because we raised the rent in 2016 and have seen a full year with the same tenant at that higher rate of $2,175.00. Additionally, we saw virtually no repairs or maintenance on the property. It was brand new when we purchased it in 2007 and we seemingly made more than a year's worth of repairs in 2016 so we were due for an easy year. Let's look at the specific numbers: 2017 Cash Flow Analysis2017 Rent Collected
Total Rents Collected $26,100.00 by check 2017 Expenses Paid
Total Expenses Paid $20,170.76 Total Cash Flow $5,929.24 Officially our best year ever! Our cash flow through the years:
Notice the pattern? It seems every other year I make better cash flow. This correlates with years in which the tenant has the property 100% occupied and rent is consistent. Also, by the second year, the tenant and I have worked out all of the kinks (i.e. repairs, maintenance issues) and the property seemingly costs less to keep up. What's next? I've given up on the idea of doing the cash out refinance to improve the yield from the investment in this property – something I hinted at last year. I just don't have an interest in taking on more debt and finding a new property. I'd rather just focus on my businesses. The agreement with the tenant runs out next May. I will need to negotiate a new lease at that time. My hunch is that they will want to remain in the property and I might be able to raise the rent to $2,200. What gets me excited about this property is the idea of getting rid of the mortgage and being able to bank ~$15K in cash flow each year. That would be an awesome supplement to our business income and/or retirement investment income in the next phases of life. 2016 Cash Flow AnalysisIt's time once again to do our annual rental property cash flow analysis. 2016 was a pretty good year for our rental property. It didn't start out that way, though. Things were shaky in the first quarter. Home values and subsequently, property taxes, were rising, cutting into our monthly cash flow. Then we found out we were losing our tenant, whom we loved. It wasn't looking good. In a bid to save the year and improve our cash flow going forward I took a chance and raised rent by $300 when I put the property back on the market. It worked! Our first tenant application was an excellent one (great credit score and job status) and they were eager to sign a two-year lease at the increased level. Let's look at the numbers: 2016 Rent Collected
Total Rents Collected $24,357.50 Expenses Paid
Total Expenses Paid $22,423.78 Total Cash Flow $1,933.72 If it hadn't been for those semi-major repairs to the garage door, shower, and air conditioning, the property would have performed really well. Not our best year ever. But getting the new, quality tenant at a much higher rent should mean good things for this next year. Our cash flow through the years:
The increased home value (purchased for $205,000, now worth $323,000) has put us in an interesting situation. Even with the increased rent and cash flow, the amount of equity we have in the property now makes the investment look really poor on paper. $1,900 in annual cash flow for $180,000 in equity ($323,000 value per Zillow – $143,000 outstanding mortgage debt) means we're earning ~1% for our efforts. I recently talked with Eric from www.IdealREI.com he had an interesting suggestion: do a cash out refinance and use the funds for another financial goal. We could take the cash and buy another rental property, pay down the debt on our personal residence, or simply put it into the stock market. All would likely results in an annual return greater than 1%, don't you think? What do you think we should do? 2015 Cash Flow AnalysisDid we make money this year? Is the investment still worth it? What needs to change in 2016? These questions and more will be answered in our annual review. A little background…we purchased the property, a townhouse, back in 2007. It was our first home. We lived in for almost five years before deciding it was time for a bigger place with a yard. We moved across town to another neighborhood. Instead of selling the house, we decided to try to keep it as a rental property. It's been a complete DIY process for us. We prepared the house for rental, we listed it ourselves, we vetted tenants, we signed agreements, and we collect rent. We've been through a couple of tenants over the last four years. Both have been a pleasure to work with. As for 2015, it was a quiet year on the rental front. Our tenants agreed to another year (resigned in April). We dealt with minimal repairs and maintenance. We did, however, face significant increases in our property taxes. Home values are rising in this area. Overall that's a positive. But it will require us to ask our tenants for more rent in 2016. That will be interesting. Alright, on to the numbers. 2015 Cash Flow Analysis2015 Rent Collected 1,875.00 January Rent Total Rents Collected $22,500.00 Expenses Paid $10,108.44 Mortgage Payments for 12 Months Total Expenses Paid $19,341.53 Total Cash Flow $3,158.47 In total, it was a great year. Revenue was solid. Expenses were reasonable and not unexpected. I do have some work to do when it comes to revisiting our insurance policy (it went up by +$100). And I'll need to consider a rent increase due to the significant rise in property taxes. If you look at what we originally “invested” in this property ($41,796) at the time we converted it to a rental, our annual return was 7.6%. Not bad. Another way to look at this property though is to compare the return to the overall current cash value. Zillow says the unit is worth $290,250. We owe $146,225 on the property. So if we sold it, we would free up $144,025 in cash (this ignores taxes on the sale and depreciation recapture). If you compare our annual cash flow to this value, you get a significantly smaller return of 2.2%. Said another way, because we aren't selling this property, we are settling for a small return on our money. Of course, there are other factors to consider, like the effect on taxes (which is very positive) and the diversification of our investments. I don't think we'll be selling anytime soon. But I think it's good to know where we stand, and I'm thankful we have options. What do you think of the year we had? What would you do about the rental increase? How would you handle it? And what do you think of my secondary cash flow analysis? 2014 Cash Flow AnalysisAnother year has passed and it's time once again to report on the progress of our rental property. I had a few negative things happen this year that could have ruined the year. First, my tenant broke his lease. This was somewhat expected. He'd been telling me that a job change was coming. The transition was uneventful and I only had five days of vacancy. And…I was able to raise the rent by $100 a month! Second, I screwed up a DIY repair. The shower valve went bad last winter and I attempted unsuccessfully to repair it on my own during the vacancy period this May. I ended up doing more damage and had to call in a plumber. Not only was the fix time-consuming and expensive ($496 total), it required drywall and tile work, which the plumber wouldn't do. On the positive side, I can now do drywall and tile work. Finally, the hot water heater went bad over July 4th weekend. As fate would have it, I was out of town at the time and couldn't do a proper evaluation. So I bit the bullet and replaced the seven-year-old heater, sight unseen. I spent over $1,300 on the new heater. On the positive side, I won't need to replace a water heater for several years. So even though I had some issues, in the end, I was able to make the most of things and have another very positive year. I expect the year-ending cash flow report to again be very strong. Let's dig into the numbers. 2014 Rent Collected 1,775.00 January Rent Total Rents Collected $21,474.55 We collect rent using Chase Quickpay, which makes it super easy and free. Our new tenant was a Chase account holder. I can't stress enough how easy this makes the process. In my next lease agreement I may make this mandatory. Expenses Paid $10,104.44 Mortgage Payments for 12 Months (Details of the loan) Total Expenses Paid $19,370.11 Total Cash Flow $2,104.44 Not as nice as I hoped. The repairs really cut into the profits. But still very positive, and that's $2,100 I have in my pocket. In unrecognized gains, the property is really climbing up there in value. And I can't wait to see what kind of loss I get to count against this year's personal income. Up next for this property: the lease runs out in June. I'm hoping the current tenant will stay on another year. We'll see. You can read the entirety of my rental property experience by sifting through the real estate category. What are your thoughts on our year three cash flow report? Leave your comment or question below. Cash Flow Analysis 2013Another year has passed and it's time once again to report on the progress of our rental property. Generally speaking, it's been a very positive year. No issues with the tenant other than the threat of a job loss, which would have forced him to move. Luckily, that didn't happen and I'm thankful I have a tenant that over-communicates in this area. Given that there were 12 solid months of on-time payments and no major repairs or unexpected expenses, I expect the year-ending cash flow report to be very strong. Let's dig into the numbers. Rent Collected $1,775.00 January Rent Total Rents Collected $21,251.31 We collect rent using Chase Quickpay, which makes it super easy and free. Expenses Paid $10,104.44 Mortgage Payments for 12 Months (Details of the loan) Total Expenses Paid $16,994.90 Total Cash Flow $4,256.41 Nice! This easily beat my expectations and it's more than made up for the slow start in 2012. Given our initial investment of $41,796, this cash flow produced an annual return rate of roughly 10.2%. Being a landlord definitely comes with its risks, but this is certainly one of those times when I'm going to celebrate and feel good about our investment. I have this tenant till August 2014, and would love to keep him on, so the next thing I'll cover is signing a follow-up rental agreement. You can read the entirety of my rental property experience by sifting through the real estate category. What are your thoughts on our year three cash flow report? Leave your comment or question below. Cash Flow Analysis 2012All has been pretty quiet on the rental front. Our tenant is paying on time and reporting no issues. Be sure to scan the real estate category of this blog to see our history with this rental property. Today I thought I'd share the cash flow analysis of our first six months (ending December 31, 2012). We moved out of the townhouse (aka purchased it for rental on July 1, 2012). We rented it out on August 15, 2012 and have maintained the same tenant. Rent Collected $500.00 Holding Deposit Total Rents Collected $7,957.50 We also collected a $1775.00 security deposit, which I'm not including in my calculation. Those paying attention all along will notice that my rent is $25 higher than I previously estimated. So that's a win. Expenses Paid $5,054.22 Mortgage Payments for 6 Months Total Expenses Paid $8,011.43 I didn't make an insurance payment in the last half of 2012 so that didn't pop its ugly head up on this report. But it will for the 2013 report, of course. The late fees on the HOA dues are of course a pain in the rear. My fault totally there. For some reason when I switched the payment coming from Capital One 360 to Chase (where our real estate checking account is), the HOA company didn't like the payments. I've since corrected the issue, but due to some negligence, I'm out the $19. Oh well, could have been worse I guess. Total Cash Flow -$53.93 I'd say we made it through the first six month period quite nicely given that we didn't have a tenant for one and a half months. I've got my current tenant on a two-year lease so we should have a solid 12 months of rent to collect in 2013, with roughly the same expenses (plus, the insurance I mentioned above). The report for 2013 should be cash flow positive in the $2,000-$4,000 range. As a bonus, the tax loss on this property is going to be pretty substantial for 2012 with first-year depreciation and all of these expenses to include. It should end up helping us quite a bit in reducing our taxable income. I look forward to sharing that report with you soon. What are your thoughts on the cash flow report? Does this make you more or less interested in buying a rental property? Do you think I have a good investment on my hands? Or do you see it as a wash, and better than having sold the place for a loss? The post The Cash Flow Analysis for Our Rental Property (at Year End 2018) appeared first on Part-Time Money. |
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January 2019
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