There will be a number of expenses that would have to be considered. Since I will be responsible for almost all of the utilities with the apartments, this will involve higher than normal bills as I would have to address for multiple buildings. The total of nearly $50,000 will go a long way in providing for the resources required. It also means that the income is not pure profit. The following are the bills that would be accounted for:
- Bills ($2,850)
- Electricity: Solar Panels
- Internet: $1250
- Telephone: $100
- Water/Sewage: $1,500
- Employee Resources ($32,650)
- Bus Pass: $700
- Employees: $23,200
- Health Insurance: $1,750
- Retirement Account: $7,000
- Taxes ($12,250)
- FICA: $1,750
- Property Taxes: $2,500
- Tax: $8,000
- Domains: $50
- Miscellaneous: $1,500
Bills are relatively low due to the simplified telephone system, and low cost resources for that, and the fact that electricity is generated with solar panels. Internet and water is high since every apartment building will require these payments. Essentially, the more apartment buildings, the more these bills will go up. However, a means to address all of the bills is straightforward and to the point.
Employees needs support to do their job. This will include a paycheck, but also a bus pass, health insurance contribution, and a retirement account match for the IRA. Since the human element is the most expensive, it will stand to reason that this will be the most expensive group of expenses.
Taxes are just that – taxes. The FICA taxes is divided in half which the employers covers half of the tax, and the employee covers the other half. Each side is assumed to cover 7.5% of their total check. Property taxes are essential since real estate is the most important resource. Without real estate, there is no reason to have employees. In a worst case scenario, I might be the only employee, and hire companies to handle maintenance issues. Then there is the tax on profits which is a monthly contribution to a tax account. This account will cover for income taxes that the realty company would have generated.
Domain?s are just that – domains. There will be 2 of them including fsp.homes. There will also be a $300 domain that I would acquire which will replace fsp.homes as the primary domain. Since the cost of .homes domains are so cheap, this domain would be kept in the instance that I would be able to acquire my realty company. Miscellaneous will include things such as paper products, coffees, and filters, and basic office supplies that are too infrequent to consider a single line item for those products.