Monday, August 1, 2016

Passive Income Report: July 2016

It is time again for my monthly Passive Income Report.

In these posts I review 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 July 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! 

Read More to see how I earned $587 this month in passive income...

Dividends Received
I received dividends from two companies, and two covered call options, this month:

Annaly Capital Management (NLY), and Prospect Capital (PSEC), Midstream Magellan Partners (MMP), and HCP Inc (HCP).  Listed below are the details for each:

Rental Income Received
I currently have two rental properties, my Missouri Rental and my Colorado Rental.  Listed below is the cash flow they provided after all expenses this month:

This was a very good month for rental income, but was one of my weakest months of the year for dividend income.  That's the beauty of having multiple income streams - they can offset each other to still generate a very respectable $ in passive income.  One other small positive note from this month was that my required escrow amount actually declined for my Missouri property, so now I expect to get $64/mo going forward.  Cool!

From the two above rentals, I experienced an 'equity paydown' total of $931, which is not accounted for in the above passive income numbers.  This is another reason why rental properties are incredible investments!  Huge equity "earnings" paid for by your tenants.  And this amount is $3 larger than May's report and is $16 larger than January's.  Consider that for a second: by doing nothing at all, my 'passive income equity investment' (we'll call it) increased by $16 a month in only half a year! How long does it take to achieve that kind of increase with just dividends?

Therefore, for this month, Total Passive Income Received: $587.47

Both Roth IRAs are now maxed out (two goals complete!), so expect the purchases to be basically zero until I finish paying off my family debt, which is another one of my goals for the year.

This was still a great month for my passive income portfolio.  With the addition of this month's income to my Progress Tab I now have earned $4103 this year in passive income. With over half of the year completed, I am well on my way to achieving the most important of my passive income goals, reaching $10,000! I know there may be some doubters at this point, but we will see!!

As always, I appreciate your thoughts and insight.

Thanks for reading,

Passive Income Dude 


  1. Nice to see your income stream coming from varied sources. Dividends, options, rentals... Looks good to me. Been reading a lot more about covered calls recently and seeing real trades form our fellow bloggers also helps visualize about trading options. Good job for July. Thanks for sharing.

    1. Thanks KP. One day I'll have a month where all align! Covered calls are a great way to make some extra income, but you can lose a lot of 'would be return' if you try and get greedy. Probably not worth it unless you do short duration and significantly out of the money. Thanks for stopping by,

  2. I like it. Dividend and rental income. Nice job.

    1. Thanks IH. Not a bad month at all. I'm looking forward to SEP and DEC. :)

  3. Having 3 rental properties on the side is just awesome. Majority of the equity is paid by the rentee so even if the cash flow is minimal, rental property is still a great wealth building vehicle. Good luck!

    1. Thanks German Korb. I couldn't agree more. The cash flow usually starts to accelerate several years in (perhaps as many as 5 sometimes.) But the equity paydown is a huge huge benefit that reduces your risk in the investment drastically each month. Thanks for stopping by!

  4. Thanks for stopping by over my way! Excellent month, two rentals generating that type of excess cash is awesome, like you said the addition of the equity building on top of that shows how powerful a cash flow positive rental purchased at a good price can be. Looking forward to following along.

    1. No problem Stacker. Also just added you to my blogroll! The two rentals do help out a lot. I had to sell a lot of dividend stocks to purchase them though, so I am glad they are at least throwing off some cash. :) And you got it with the equity being a huge part of that. It's like a second stream of income that isn't realized until you sell. That's why I love real estate. Takes a lot to get off the ground, but once you do it can be very, very powerful. Keep in touch