Friday, February 17, 2017

A 'Real' Example of Real Estate Leverage

I haven't written much lately; partly because life is busy, partly because I am still somewhat doing a 'side gig' and pursuing other interests, partly because the "payoff" from a PassiveIncomeDude article is very low currently, and partly just because I haven't had much to say.  I am drastically paying down debt and contributing regularly to ROTH IRA investing, which has resulted in nothing 'exciting' going on with my investments, in terms of buying stocks, buying properties, or selling etc.

That said, I am currently in the process of marketing my North Carolina Property (here) for rent this summer, and I witnessed a great example of leverage recently that I thought would be useful to share.

As some of you may know, I am a HUGE fan of leverage, especially and specifically real estate leverage, where your leverage is backed by a 'real' asset (the lumber, steel, concrete, glass, petroleum products, brick, etc) that all go into making a house AND it is an asset that you actually control.  This is in direct and stark contrast to "stock market leverage," where you only have very, very minuscule and indirect control of whatever the company's market valuation happened to be  on the day you decided to buy.  Huge differences there worth a re-read.

All of that said, I have written about leverage (here) before on PassiveIncomeDude, where I used the example of my Colorado Property to show how I achieved a 100% return in just one year.  It is an extremely powerful example of leverage that I think is worth the few minutes of reading.

Now back to my current example from the previous owner of my North Carolina property:

Monday, February 6, 2017

Income/Expenses: January 2017

One of my favorite posts of the month! It's very personal and helps keep me extremely accountable!

I think it takes a little bit of guts to share your income and expenses openly with the world. But that said, I think there is value for both of us in reading this post. I will do a similar post every month.

General Thoughts on this Month: This was a rougher month with expenses, which I don't fully understand to be honest, but it CLEARLY hurt our savings percentage.  I think a lot of our costs were "leftovers" from the holidays, but we are definitely attempting to tighten up a few things in February. We'll need to if I want to achieve even just one of my Passive Income Goals for 2017.

All of that said, the first month of the year is behind us and listed below is a detailed display of all income and expenses for the month of January 2017.  

Wednesday, February 1, 2017

Passive Income Report: January 2017

It is time again for my Monthly Progress Review, the first of the year.  Crazy to think that we are already 1 month into 2017.

In each progress review I will list a summary of all dividends I received, the rental income I received, and any purchases I made from that particular month.

This monthly report covers January 2017.  

I hope you enjoy these posts and that we can learn how to grow our passive income streams and build real long-term wealth together! 

The most exciting part of this month for me is that I FINALLY GET TO REPORT YoY growth. Passive Income Dude is less than a year old, but I started tracking my income in January of 2016, so I now can finally report my year-over-year growth each month, which I am very excited about.

Read More to see how I earned $377 this month in passive income and would have achieved a 39.5% YoY growth rate if it weren't for.....

Friday, January 13, 2017

2016 Review: Rental Property #2 (Colorado)

This is my second property review for 2016. In this post I would like to follow a similar method to what I did with my Missouri Property: a thorough, yet to the point, review of my Colorado property's rental performance in 2016.

I'll try to review the property's cash flow, mortgage paydown, capital appreciation, general thoughts/advice I have, and anything else pertinent to the property.

I hope this post is helpful for those looking to get into real estate as an investment, and I imagine it will be helpful for me as well.  Without further adieu, here is what happened with my Colorado rental property this past year:




Tuesday, January 10, 2017

Income/Expenses: December 2016

One of my favorite posts of the month! It's very personal and helps keep me extremely accountable!

I think it takes a little bit of guts to share your income and expenses openly with the world. But that said, I think there is value for both of us in reading this post. I will do a similar post every month.

General Thoughts on this Month: This was a great month for income, thanks to a record in Passive Income, in which all dividends were reinvested, which really makes everything else look good as well (savings rate, % of expenses covered by passive income, etc).  In reality, it was pretty normal month if dividends are removed.  

As usual in December, it was pretty expensive due to the Holidays, but that happens every year and we are ok with it actually.  In fact, if you remove housing, rental property mortgage costs, and gifts/donations, our total expenses actually came in under $2,000 this month.  But when you add back in those three categories, expenses balloon to over $7,000!

All of that said, listed below is a detailed display of all income and expenses for the month of December 2016.  

Saturday, January 7, 2017

2016 Review: Rental Property #1 (Missouri)

In this post I would like to do a thorough, yet to the point, review of my Missouri Rental Property's performance in 2016.

I'll try to review the property's cash flow, mortgage paydown, capital appreciation, general thoughts/advice I have, and anything else pertinent to the property.

I hope this post is helpful for those looking to get into real estate as an investment, and I imagine it will be helpful for me as well.  Without further adieu, here is what happened with my Missouri rental property this past year:






Wednesday, January 4, 2017

Goals for 2017: Bigger, Better, Bolder!

In this post I will highlight my financial goals for 2017.  I italicize 'financial' intentionally, as I want to emphasize that the following list of goals are only related to my finances...hence my financial goals.  It'd be a sad life if these were my ONLY goals for 2017! :)

That said, I think it is important to have goals (as many of us bloggers do!) for all areas of our lives, and I talk a little bit more about the importance of goals on my Passive Income Goals page.  At that page you can also find my 2016 goal, as well as some of my future projected goals (2018, 2019, 2026....next two years and when I turn 40.)

My goals post is actually one of my favorite posts of the entire year, believe it or not.  There is something very refreshing about having a new 'start' and diligently laying out your plan for what success looks like. In the end, that's what goal setting is all about isn't it? Defining what success looks like in a particular area of your life.  Your goals are the specifics, the high-view plan, of what success looks like.

One thing I personally like to do with my goals is prioritize them, by number.  So if there is only one goal I can accomplish, it should be the one at the top of the list, and then the #2, and so on. This indicates specifically where I should focus MOST, and what I want to achieve the MOST (to consider it a 'success', etc).

Finally, you'll note that the subtitle of my blog now says I am 31 years old. Another year down, another year older!  We only have one life to live so let's make it the best. Without further adieu, here are my financial goals for 2017. Some of them are pretty bold:

Friday, December 30, 2016

Passive Income Report: December 2016 ($2,658!)

It is time again for my Monthly Progress Review, the last of the year, and a PERSONAL RECORD!

In each progress review I will list a summary of all dividends I received, the rental income I received, and any purchases I made from that particular month.

This monthly report covers December 2016.  

I hope you enjoy these posts and that we can learn how to grow our passive income streams and build real long-term wealth together! 

I am happy to report that December saw the highest Passive Income amount I've ever achieved in a single month, which I'll analyze in depth in this report.


Read More to see how I earned $2,658 this month in passive income,

Monday, December 26, 2016

Updates to Site, Side gig over, Upcoming Posts

Hi everyone,

I hope you all had a wonderful Christmas.  A Savior is born unto us.

This is just a quick post to let you know that I have made some much needed updates to many pages on Passive Income Dude.  Now that my 'side gig' is over, I should have more time to commit to my site. Here are all of the updates:


Look out for the following posts coming up over the next two weeks:
  • December Passive Income Report 
  • December Income/Expenses 
  • A thorough 2016 review on each of my 3 rental properties:
    • Missouri Rental Property Review
    • Colorado Rental Property Review
    • North Carolina Rental Property Review
  • 2017 goals 
Thanks for reading!

Passive Income Dude


Wednesday, December 21, 2016

Thoughts on Interest Rates

Hello all,

I recently completed two finance courses here at business school: Applied Fixed Income and Speculative Investments, and Global Asset Allocation and Advanced Investments.  Both of these courses were very well taught (and very challenging if I'm honest), but I'm glad I took them because I learned a lot and because a good amount of the course material was about interest rates and hedging interest rate moves, etc. which seems pretty applicable in today's investing environment.  So as a result I thought I would briefly comment on interest rates, since the Federal Reserve finally completed another (albeit small) interest rate increase.

To start, I read this from Vanguard's website yesterday (copied directly):