July 2017 Passive Income

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**The picture you see here is at Horseshoe, Page, AZ. It was right on the freeway. And it’s one of the most popular stop to detour if you travel from Denver to Las Vegas or vise versa. It was spectacular view. The Colorado River is cutting through the mountain creating what you see here is a horseshoe shape. 

I’m back from the 10 days road trip to California. I’ll post a recap later, so stay tune. But for now, let’s talk about businesses. 😛

On the landlording side –  I have 3 rooms left to rent, and 1 apartment on the triplex that I’m living at. The guy that weren’t paying, he wasn’t paying, so I evicted him. He’s moving all of this stuff today. I’ll have to change the lock as he’s not returning the keys either, siting he left his key at his girlfriend who’s out of town. **On the side note, he didn’t have good credit to begin with, he worked for himself as an HVAC tech, he has a son (but didn’t disclose to me). There were a lot of red flags, but he asked me to have some *faith*. Anyhow, I hope this will be over soon so I can list the room up.

On 4-Plex Property Taxes – The City sent out the proposal tax of 44.7% increase. The city assessor guy came and he said he’ll review the paper work. I haven’t seen any new paper work.

Okay, back to passive income report.

Dividends from 5 companies: $25.94

APLE $4.00
CAH $9.25
FCPT $0.97
O $2.12
STWD $9.60
$25.94

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 (Even with one guy didn’t pay rent, but I had another tenant moved in on another room, so my income is back up to the level it was before).

June Total: $4025.94

So far in 2017 total: $21705.43

  • January: $720.58
  • February: $1710.00
  • March: $3749
  • April: $3733.55
  • May: $4013.70
  • June: $3752.66
  • July: 4025.94

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 $4025.94 is noticeably higher than the $32.57 in dividends I received in June 2016. That’s a 123X increase over YOY. That, right there, is great progress, and I hope I can keep up similar levels of success as I go! (Notice, upto this point last year, I had liquidate a lot of my funds, so that was why the dividend income was so low, but that’s the way it goes)

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 seven 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

8 Comments

  1. Despite being a bit behind on reaching your goal, I think that you are producing great income. It seems like the shift in your investment portfolio is really paying off. I look forward to reading more about your journey. Keep up the good work and thanks for sharing.

    • Thanks! You’ll beat your goal this year, that’s for sure.

      This is a first time I hit the 4-figure income consistently, so I’m ecstatic! It’s kind of surreal. Tracking this for awhile hopefully would give us a better idea. At this point of time, cashflow matters more than increasing networth. Although, increasing networth is nice, but I don’t want my taxes to be increased. 🙂

  2. While it’s nice to have “faith” and try and see the good in people, often times that’s the prime red flag and it’s those people who try and use that against decent people. My dad is an apt. manager and he sees and hears all kinds of stories from potential renters and knows which sound shady. Oh well, time to move on and rent it out to a better qualified tenant. I’m still amazed at how you shifted from DGI to lanlord/DGI so quickly and created a real nice income stream from your properties. As long as those basic expenses keep getting covered you know you are well on your way. Keep up the good work.

    • Thank you for your words of encouragement and advise.

      Your Dad is a wise man. It works out okay, I guess, at the time I needed several guys to move into the apartment. It’s been unoccupied for a longtime, possibly since 2011. So I wanted guys to bring more yang energy. LOL 🙂

      Anyhow, I’ll finish changing the lock tomorrow as I gave the current tenants their keys. I might lose some income as I might have to lower the price a little to get that room rented to another person. Then this chapter will be behind me.

  3. You are having a great year so far and still plenty of time to go. Glad to see you got out on vacation. Looks really fun. Generating that much income to over exceed your expenses is impressive. More to come too when the issues are figured out and all tenants are moved in.

  4. Love the picture, will have to go there sometime. Just got back from Zion and Bryce vacation, it’s some of the most beautiful landscape I’ve seen in our great country.

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