Sunday, February 18, 2018

Passive Income Report: January 2018

Hello!

Sorry for the delay in posting! My finger is mostly better, so my typing is basically back, which is good news.  I've been diligently studying for the PMP (project management professional) exam with all of my free time, and so that is why I really haven't written. I imagine I'll pick back up the frequency in a month or so.

General Thoughts on This Month: January started off nicely, with no issues and no surprises.  Though I feel very thankful for the system I've created, I still feel "cash poor", with everything either being reinvested or used for paying down debt.  Eventually that should change! Though it is taking much longer than I thought, or like.

Another reason for the delay in posts is that I changed my system for how I track and report my numbers, now using pivot tables in excel, making things much easier to track and analyze, but the shift to make this happen took a lot of work.

Anyway, this month I received $1,012 in passive income!  This is the first January ever to be in 4 digits! Here are the details from this month below:

Dividends and Rental Income Received
I have some individual stocks, but mostly mutual funds, and also four active rental properties, which if you've been following my story have varying levels of success: my Missouri Rental my Colorado Rental, and my two North Carolina rentals: North Carolina 1 and North Carolina 2.  Listed below is the cash flow that each of these assets provided this month:


In summary, with dividends and rental cash flow combined, Total Passive Income Received: $1,012.

Purchases
I always do my best to add to our Roth IRAs in January and this January was no different.  I basically just bought around $500 or so of mutual funds on every major down day during the correction, investing around $2k total.  My advice - STAY THE COURSE!

Thoughts on This Month
This was a great month for Passive Income, and I am thankful for this month's performance. Compared to last year's January total in 2017 of $377, my YoY growth for this month was 168%. Not a bad way at all to start the year! I'll note that last January I only had 2 active rental properties...now I have 4, which accounts for the major increase in YoY growth.  This should continue through June, at which point actual, new growth will be more accurately measured.

With the addition of this month's income to my Progress Tab I now have earned $1,012 in total this year in passive income.  Little behind my desired pace, but I expect big months on the 3-6-9-12 cycle to hopefully make up for it.

Thanks for reading as always. I greatly appreciate your comments and will do my best to always respond. 

Dan

15 comments:

  1. What a growth rate compared to last year. Nice job PID!

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    Replies
    1. Hey thanks Diplomats! I've missed interacting with you guys. Rock on,

      Delete
  2. Woot woot congrats! Nice income and good luck on the exam.

    Curious when you add your rentals is it cashflow after paying the mortgage? Or do you include the priciple part of the mortgage?

    Keep it up
    Cheers

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    Replies
    1. Hey thanks PCanadian! I've been studying a ton, but still don't feel ready yet. About a month out from the exam, so I'll need to hit it hard for the next 30 days or so.

      As to your question - these cash flow numbers do not include the principle part of the mortgage. It is just the cash flow above all expenses to own the asset. If you look at my 'mortgages' tab (which I admit needs updating, like many other of my tabs), that area shows my principle part. In aggregate, it's about an extra $1500 per month. This is the INCREDIBLE part about real estate....your tenant pays down your debt for you! Every year that $1500/mo is about $18,000 in 'debt reduction' through principle earned. It's a beautiful thing that one day perhaps I'll be able to capitalize on! :)

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  3. That is impressive year over year growth. Rental properties are a great way to go as they can reduce your taxes.

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    1. IP, yea they are! They definitely reduce your taxes. We'll see what my effective rate is for this year in a few days....will be filing soon!

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  4. Damn, that's an awesome growth rate this year. Nice job growing those income producing properties!

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    1. Hey thanks Timeinthemarket! It really was only because I moved and purchased another rental. Going to have to keep doing similar activities to keep it up; otherwise it will be a major drop! haha

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  5. Solid start to the year! Those rental properties are all starting to work in your favor I see. In recent months all four properties are more or less in the black which is a positive sign. I can remember seeing some red with these updates a while back. Keep up the good work!

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    1. Thanks Keith. Yea, there are been better months this past year for sure. I'm now in a groove with these properties, where they are all rented, are newer homes, and have relatively solid management in place....so it is actually very (very) passive positive income at the moment.

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  6. You make real estate investing seem so easy. Great job on the YoY increase. Killing it PID!

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    1. Thanks Money Hungry, but it definitely isn't easy! Some months are easy with no work required (like January), but the entire acquisition process in first getting the property is not a walk in the park!

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  7. Hey, Dan. Glad to hear the finger is getting better. You're going to need it to keep us up-to-date on your rentals! Congrats on reaching the 4-digit mark for a month. If I'm lucky, I might do the same later this year.

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    ReplyDelete
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