Saturday, March 3, 2018

Passive Income Report: February 2018

Hello!

I'm excited to report February's passive income total, and share what I've learned with you. 

Unfortunately I'm still diligently studying for the PMP exam, and so I don't think I'll be writing much more than once a month for this blog.  But that's ok. And I'll be thankful once this exam is over...if I pass! :)  Then I can start writing more frequently.
 

General Thoughts on This Month: February was a great month, and I'd like to briefly share why; not because of a record number, or 4 digit passive income, or a major change in my portfolio, but simply because it is is reflective of the system that I have built from years of diligent saving and investing and wise decision making. A system that you too can build. Really all it takes is diligence, patience, and sacrifice.  It's incredible what you can achieve with those three ingredients.

This month I received $984 in passive income and it wasn't because of anything new that I did. All of this amount from this month was from past decisions I made in which I am now reaping the reward.  It really is true that you reap what you sow. This is a life-principle that I would not fight against!  You truly do reap what you sow.  So I would say, sow deeply!

Dividends and Rental Income Received
I have several individual stocks, but primarily 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: $984.79.

Purchases
I always do my best to add to our Roth IRAs early in the year and this February was no different. I still have a long way to go but I'm proud of my progress. My recommendation: always try to max your ROTH IRAs!

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 February total in 2017 of $179, my YoY growth for this month was 450%. Wow. 450% growth. Not a bad way at all to continue into the second month of the year! 

I'll note that last year I only had 2 active rental properties...and 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 $1,996 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

11 comments:

  1. Steady income continues coming your way, Dan. Nice work again! It appears the rentals delivered nearly the same amount as last month, except for the MO property. Were there some unanticipated expenses there? Do you have a minimum cash flow amount that you look for when you acquire a property?
    Good luck on your PMP exam.

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    1. Hey thanks Engineering Dividends! And yes, the MO property had about a $75 repair cost. That comes straight out of the bottom line and sometimes makes cash flow negative.

      As to your other question regarding minimum cash flow amount required, I really don't have a set minimum, since a lot of variables and retrun metrics go into a property purchase, however, after having my Missouri property, I would say anything less than $100 is too close to even and propably will be a terrible property after expenses! :)

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  2. Wooot nice income. Always nice reading about your rentals. Like engineer said wht happened with that one at a loss?

    Cheers

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    1. Hey passivecanadian! Thanks. Yea the missouri property every once and awhile has repairs that eat away the passive income. Though the house is relatively new, there is always something! This is part of the challenge with rental properties...you cannot predict your cash flow as reliably as some of the div aristocrats or champions. That said, I think you give up some stability for a much higher overall return. Take care,

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  3. Great rental income! What are your plans on future growth? Are you looking into buying more rentals?

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    1. Hey Korb, thanks. As for future growth, I tend to go in a cycle where I save up and scrape enough money together to buy a rental, and then go through a de-leveraging period where I have to pay off tons of debt and save and start over. I'm still trying to max our ROTH IRAs...then I will start saving for the next one. I'd say about 1yr away before another, unfortunately. Once I get promoted (next year) I should have more income to pick up the purchasing cycle. It's not easy, but having patience is ok!

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  4. Wow, you are just killing it!

    450% growth is crazy. I'm not sure how you juggle all these things as well as you do.

    Keep up the good fight.

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    1. Hey thanks Steve! Very kind brother! YES, I am happy with the growth, but to be honest it really is only because we moved (and then turned that home into a rental) and bought another rental. On top of that, I bet during FEB of last year I had some real estate expenses that lowered my monthly total, with this year having fewer/less expenses, making the growth look bigger. lol.

      But yea, I do think we're moving in the right direction. Still, each day is just one more step, right?? I am a big believer in having the right system and sticking with it over time...take care,

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  5. Great dividend and rental income PID! Strong results as always and a 450% growth rate compared to last year is just insane. Keep up the great work!

    Bert

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  6. Great total for the month of Feb. Your present self is thanking your past self :) as you said you are just reaping the rewards of your previous decisions. Nice to see a nice real estate picture for the month as well. You have really build up a nice portfolio over the last year or so. Keep it up!

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  7. Your present personally is certainly saying thanks to an individual's former personally, as you may says that you're basically seeing Passive Income any achievements to your old actions. Fine to observe a properties imagine to your four weeks in the process. You will have extremely improve a past record over the last year or so. Keep it up!

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