Our first year owning our rental cottage is coming to a close. We’ve learned a lot and have made lots of progress. 2023 is looking bright, as bookings for next year are already coming in. Here is a quick year in review and a look ahead.
Total Bookings
Total bookings for 2022 came in at just over $15,000. I estimated we’d bring in $10,000, so we performed better than expected. It is also interesting to note that we didn’t open up the cottage until May 1, so the $15,000 that we made was achieved in 7 months. We are keeping the availability open for 2023 for the entirety of the year, so we are hoping to see an increase in revenue for the coming year.
Projects
Most of the money that we earned this year has gone back into the property in the form of a new deck, a new roof, and some interior and exterior work. The last major project to complete will be to upgrade the HVAC system. Once that is done carrying costs such as taxes, insurance, maintenance, and services for lawn care and cleaning will be the only expenses to consider.
Looking Ahead
Once all projects are completed the profit earned on the cottage will be going towards the purchase of a second property. We’ve always had a goal of scaling into multiple properties, so the revenue coming in from this rental will help to serve that. Beyond that, we’d like to build a portfolio of properties, but we want to take our time and do it smart. We also don’t want to leverage ourselves too heavily.
A Year in Review
Our first year owning our rental cottage is drawing to a close. We’ve done a lot of work making the cottage inviting, and we’ve learned a lot about hosting guests and the economy of the area. There is still a lot to learn and improve upon, but our first year was a success. We’re hoping next year will be even better, and long-term we hope to expand by buying additional properties.
Read Also:
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Our Rental Continues to Perform Well
5 Questions To Ask Before Buying Your First Rental Property
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Based in the Pittsburgh, PA area, Brian holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth building, investing, gardening and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.
