I did it! Five figures passive income within the first five months!!!
Bam! It’s May, yo’all. Time flies like crazy. It’s been five months since I bought the commercial rental property. The Cat Rescue/Cat Store is running by my tenant. And rent money is rolling in.
On the landlording side – there are a couple of tenant turnovers that I’m working on. A dryer start button went out, so I’m looking to see if I would replace the part or buying a new dryer. I also need a new washer for my new unit. I’m on the last leg of building that room. I need to install the baseboard.
On the workout/exercising front – we’ve been parking our bikes at the apartment so when the timing/weather permit, we often bike after work. It was awesome. Mr.W’s bike gear is giving out, so we’re looking to make a big investment on 2 bikes ($1000/each). I’m looking to see if we can get 2 carbon fiber bikes <20pounds (10kg) for <$1000. I’d build my own bike if I have to to stay on the budget.
The picture is Lee Washington University that we visited over Memorial Day weekend. That was why I didn’t have any blog post for a week. LOL 🙂 I’ll do a Memorial Day weekend trip recap a little later when I have some off time. LOL 🙂
Okay, back to passive income report.
Dividends from 2 companies: $13.70
05/23/2017 HCP $3.70
05/15/2017 KMI $10.00
Income from Rental Properties
I consider these properties as *passive as I don’t manage the one in the midwest, and the commercial property doesn’t require much involvement from me. I do have to do some fixing here and there for the residential half of it. I’ll talk more about this later.
- Income from Midwest Rental the $77K investment (This is after insurance, maintenance, and taxes): $700
- Income from Commercial Rental: $2000
- Income from 1 of 2 unit: $1300 (This is $300 increased as I added another tenant)
May Total: $4013.70
So far in 2017 total: $13926.83
- January: $720.58
- February: $1710.00
- March: $3749
- April: $3733.55
- May: $4013.70
If I leave my investments alone and included my take home income from last year, my portfolio would worth $450K, I would have generate $18,000 with 4% yield. But my yield was around 2% so it would have only be $9,000. So, by shifting my investment, so far this year income is beating last year dividend income.
This month income of $4013.70 is noticeably higher than the $47.75 in dividends I received in May 2016. That’s a 84X increase over YOY. That, right there, is great progress, and I hope I can keep up similar levels of success as I go!
I was able to cover just over 260% of my basic expenses (check out how I kept my lifestyle from inflating) this past month through the power of compounding interest/dividend/passive income. It’s really great to know that I was able to cover a 260% of my basic monthly expenditures by way of complete passive income. The progress of dividend growth investing is real and tangible. The market can decide to mark up or mark down the value of a company day by day, but the dividends and rental income will still roll into my brokerage account just like usual. Passive income are reliable just like my expenses, and that’s one of the reasons I plan to use this strategy as my income generator through early retirement. I either use dividend income to continue to reinvest to offset old age expenses or if one day I’m tired of managing property, dividend income will serve as my main source of income. It’s funny when my income is now come from 6 businesses rather than just relying on one company (my job). My job which there is always a risk of getting fired or layoff at anytime, but with pay checks coming from 6 different sources, even if I don’t receive pay from 1 or 2, I’m still largely unaffected. That’s the beauty of dividend investing strategy.
**Note: This expense list is a little outdated, as I’m now married to Mr.W. His expenses is higher than mine. However, taking into the consideration of we share the same house expenses like: Housing, Cable, utilities are the same. Only added, his travel, medical, eating out, clothing, and entertainment expenses. I might update this Expenses post in the future posts.
With almost half of the year behind us, I’m now five full months into one of my goals to generate $50K in passive income during the year. The year is 41% over and I am 27% on my way to completing my primary goal. I’m a little behind. I need to step up to get my other empty unit rented. I might have to revise my goal, however, for now, I’m just enjoying crushing 5-figure income (YTD for the first time).
I’ll update my dividend income page to reflect May passive income.
How are your dividend/passive income tallies progressing? Everything progressing the way you had planned?