KM Partners, LLC — Cherokee Properties

Year-to-Date Profit & Loss Report  |  January – June 30, 2026

YTD Jan–Jun 2026 NET LOSS: -$31,339.81
⚠ Portfolio Note — As of June 30, 2026 Total expenses ($57,644.81) significantly exceed YTD rental income ($26,305.00). The primary drivers are Interest Expense ($31,267.23) and Repairs & Maintenance ($13,934.38). 13 Akokisa Dr shows $0 rental income YTD and requires immediate attention.
$26,305
Jan – Jun 30, 2026
$57,645
All properties
-$31,340
Loss across portfolio
7 of 8
1 with $0 income

Income Summary

11 Akokisa Dr$5,970.00
13 Akokisa Dr$0.00
15 Niska Dr$3,500.00
16 Annette Rd$1,100.00
16 Arapaho Dr$2,985.00
24 Tenkiller Ln$5,400.00
32 Tenkiller Ln$2,450.00
85 Cree Dr$4,900.00
Total Income$26,305.00

Expense Summary

Interest Expense$31,267.23
Repairs & Maintenance$13,934.38
Management Fees$4,383.50
Insurance$3,395.68
HOA Fees$1,667.10
Utilities$1,535.35
Escrow Fees$1,330.89
Landscaping / Storage$135.00
Taxes-$4.32
Total Expenses$57,644.81

Net Income by Property (YTD)

All properties show a net loss YTD — bar length = magnitude of loss
11 Akokisa Dr
-$448
13 Akokisa Dr
-$5,043
15 Niska Dr
-$13,172
16 Annette Rd
-$5,492
16 Arapaho Dr
-$3,404
24 Tenkiller Ln
-$880
32 Tenkiller Ln
-$2,638
85 Cree Dr
-$263

Full Profit & Loss — All Properties (Jan–Jun 30, 2026)

Category 11 Akokisa13 Akokisa15 Niska16 Annette 16 Arapaho24 Tenkiller32 Tenkiller85 CreeTotal
INCOME
Rental Income$5,970$0$3,500$1,100$2,985$5,400$2,450$4,900$26,305
Total Income$5,970$0$3,500$1,100$2,985$5,400$2,450$4,900$26,305
EXPENSES
Escrow Fees$1,331$1,331
HOA Fees$400$400$67$400$400$1,667
Insurance$460$558$497$505$384$490$502$3,396
Interest Expense$3,705$4,085$3,500$2,969$4,703$4,497$3,653$4,156$31,267
Landscaping$120$120
Management Fee$612$920$550$712$540$545$505$4,384
Repairs & Maintenance$1,241$11,939$529$225$13,934
Storage$15$15
Taxes-$4-$4
Utilities$313$653$125$445$1,535
Total Expenses$6,418$5,043$16,672$6,592$6,389$6,280$5,088$5,163$57,645
NET INCOME (YTD) -$448-$5,043-$13,172-$5,492 -$3,404-$880-$2,638-$263 -$31,340

Monthly Averages (6 Months)

Avg Monthly Income$4,384
Avg Monthly Expenses$9,607
Avg Monthly Net-$5,223

Biggest Expense Drivers

Interest Expense54.2% of expenses
Repairs & Maintenance24.2% of expenses
Management Fees7.6% of expenses
Insurance5.9% of expenses

Strategic Recommendations

🔴 High Priority
Lease or Sell 13 Akokisa Dr Immediately
13 Akokisa Dr
This property generated $0 income in 6 months while incurring $5,043 in expenses (HOA, insurance, interest). Every month of vacancy deepens the loss. Aggressively market for rent or evaluate a sale to redeploy capital.
Current drag: -$5,043 YTD with no offsetting revenue
🔴 High Priority
Audit 15 Niska Dr Repair Spend
15 Niska Dr
$11,939 in repairs YTD is the single largest expense line in the entire portfolio — 85% of that property's total costs. Determine if this is a one-time capital improvement or ongoing deferred maintenance, and cap future spend with a repair threshold policy.
R&M alone = 3.4× annual rent collected at this property
🔴 High Priority
Refinance or Renegotiate Debt
All Properties
Interest expense at $31,267 is 54% of all costs and exceeds total rental income by $4,962. Explore refinancing at lower rates, consolidating loans, or paying down highest-rate balances first. Even a 1% rate reduction could save ~$3,000/yr per property.
Interest exceeds all rental income by $4,962 YTD
🟡 Medium Priority
Raise Rents to Market Rate
16 Annette Rd · 32 Tenkiller Ln
16 Annette Rd collected only $1,100 in 6 months (likely partial occupancy or below-market rent). 32 Tenkiller Ln collected $2,450 vs. a $1,100/mo budget — suggesting a lease renewal opportunity. Review all leases against current market comparables in the area.
Potential uplift: $200–$400/mo per underpriced unit
🟡 Medium Priority
Review Management Fee Structure
15 Niska Dr · 16 Annette Rd · 16 Arapaho Dr
Management fees total $4,384 YTD. 15 Niska Dr paid $920 in mgmt fees on only $3,500 in collected rent — a 26% effective rate. Renegotiate to a standard 8–10% rate across all properties and ensure fees are only charged on collected rent.
Potential savings: ~$800–$1,200/yr at market rates
🟡 Medium Priority
Bundle Insurance Policies
All Properties
With 8 properties paying separate insurance premiums totaling $3,396 YTD, a landlord portfolio policy or commercial umbrella policy could reduce premiums by 15–25%. Get a quote covering all Cherokee properties under one policy.
Potential savings: $500–$850/yr with bundled coverage
🟡 Medium Priority
Implement a Repair & Maintenance Cap Policy
All Properties
R&M totals $13,934 YTD with no apparent policy governing approval thresholds. Set a $500 per-incident cap requiring owner approval above that. Use a preventive maintenance schedule to reduce emergency repairs, which are always more costly.
Goal: reduce unplanned R&M by 30–40% in H2 2026
🔵 Longer Term
Consolidate Utility Billing
15 Niska Dr · 16 Annette Rd · 24 Tenkiller Ln
Utilities ($1,535 YTD) are being paid by the owner at 3 properties. Where lease terms allow, transition to tenant-paid utilities at renewal. This alone removes ~$3,000/yr from the expense column without affecting rental income.
Potential savings: ~$3,000/yr if shifted to tenants
🔵 Longer Term
Evaluate Low-Performing Assets for Sale
13 Akokisa Dr · 15 Niska Dr
Together these two properties account for $18,215 (58%) of total net losses. If repair and occupancy issues cannot be resolved by Q3 2026, a disposition analysis (sale price vs. continued carrying cost) should be completed to protect overall portfolio returns.
Combined loss: -$18,215 YTD (58% of total portfolio loss)