June Passive Income

am

Half a year has gone by, and I’m still at it, putting more money back into the market. As I bought

Recent Buy – Kroger (KR, $KR)

Recent Buy – TGT, $TGT

and I added more

Recent Buy – NRZ (And they’ve raised dividend by $0.02 too, on the dividend payout date, the stock dipped, so I took advantage of the lower price).

 

On the landlording side –  I finally bought that new washer. The drama was HomeDepot technician couldn’t get the hose out. On top of sinking $415 for the washer, I had to forked in $60 for my plumber to come out sawing off the old connection hose.

On 4-Plex Property Taxes – The City sent out the proposal tax of 44.7% increase. I bought the property for $415K, and The City appraised it at $6xx,000. Which is insane!! I’m not selling my property anytime soon, so it was devastating for them to increase taxes to more than $7,000/year. So, I went to the City and have my property in review. I’ll update on this later.

Okay, back to passive income report.

Dividends from 6 companies: $52.66

CTL  $10.80
APLE $4.00
O $2.11
TGT $6.00
F $25.95
WFC $3.80

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: $1000 (This is a $300 decrease, because one of my tenant isn’t paying rent. He says he has a fulltime job now, so I’m going to see if he’ll pay this month, if he doesn’t I’ll start on the Eviction Process, by Law, I’d still have to give him 30 days from the notice, I handed him the notice. So, I can still go and file at the small claim court if I have to kick him out). 

June Total: $3752.66

So far in 2017 total: $17,679.49

  • January: $720.58
  • February: $1710.00
  • March: $3749
  • April: $3733.55
  • May: $4013.70
  • June: $3752.66

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 $3752.66 is noticeably higher than the $744.26 in dividends I received in June 2016. That’s a 5X 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 half of the year behind us, I’m now six full months into one of my goals to generate $50K in passive income during the year. The year is 50% over and I am 35on 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 June passive income.

How are your dividend/passive income tallies progressing? Everything progressing the way you had planned?

GA

16 Comments

  1. This looks like a great month of passive income. I’m glad that your rental properties are producing a nice cash flow for you.

    I must have missed your post about acquiring your midwest property. I am curious to know how you ended up buying a property so far away from you.

    • As always, thank you for commenting.

      Back in March of last year, I bought a house sight unseen on auction.com. As for the location, that’s where I grow up and I still have all of my immediate family there. I’m not a fan of buying a property far away, but I love the location, and it’s something I’d like to live in once we move away from our current city.

      My brother did the work. I listed the house, my sister showed the house.

      This is a post about the renovation before and http://wellroundedinvestor.com/2016/11/03/inside-the-77k-investment-property-update/

      It was supposed to take a month, but last year was my wedding, we had 2 parties, the city required permits, we need new hvac and we had to had a lot of quotes for great price, so all and all, it’s still a great investment. As the property value triple in price, and bringing $1000/mo in gross income.

      My thing was I had to sell a lot of stocks to come up with the money, some of those stocks also double in price or increased a lot.

      But there is no regrets, I enjoy the monthly cash flow.

  2. Nice month! Amazing to see your income so far above your expenses. I’ve never owned a commercial property, is it much different than residential?

    • Hi,
      Thank you for stopping by and commented.

      Commercial vs residential is same different. Commercial, they’d still call you for stuff, but I have it in the lease that they take care of stuff themselves.

      With commercial, I still have to go through the interview process. This way I know which business will more likely to be successful. This in turn will allow me to raise rent and longer contract, so I don’t have to worry about turning over like my 4-plex at the university.

      Because I listed so low that I pretty much hand pick my tenants. 🙂

  3. Looks like June was a great month for you on all fronts. You really put your money to work more effectively with your rentals and are killing your results from last year because of rent vs. dividend income. Congrats. Too bad about one of your tenants not paying you. That’s always a pain to collect and start an eviction process. Just part of being a landlord I guess. Thanks for sharing.

    • I talked to the tenant, he has a job now. His paycheck is next week, he’ll be paying at least one month and a little bit. We’ll see how this goes though.

    • I like income streams 🙂 I’m ecstatic about the expense coverage. We haven’t increase or inflated our livestyles that much. Other than sinking around $2k for the bikes, we spend time outdoor so we’re not at home hitting “buy” button on Amazon. Or watching TV to look out for newest and latest tech. 🙂 so we’re good on that front.

    • Thank you. I love the rental income. But I still miss the dividend income. It’s much less work, that’s for sure. 🙂

  4. Hope that your tenant pays up and that you don’t have to kick him out. All the hassle is not something you want to have.
    None the less, still a pretty good income for the year!
    Good luck getting your tax assessment down too.

    • Thanks, I hope so too. He’s getting paid this coming week. He said he’ll definitely pay me. So, I’m hoping. Anyways, I don’t want to go to court or kicking anybody either.

    • Thanks! Just to cash out the $77K to buy the house in the Midwest, the net income was greater than last year figure. But everything takes time, patience, and effort. If you want to join the landlording world, it’s definitely doable and the result is spectacular!

  5. I’ve been listening to a lot of audiobooks lately on dividend income. I should have just saved my money and read your posts instead. Very motivational. Congrats on the amazing increase from last year. It sucks about your tenant, but it looks like things are moving in the right direction. Good luck on meeting your 50k goal for the year!!!

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