Saturday, March 31, 2018

Passive Income Report: March 2018

Another month down...time continues to roll as we are already now one quarter of 2018 complete!

This was a great month for passive income, as most mutual funds pay out on the 3, 6, 9, 12 month cycle and is where I have the bulk of my portfolio outside of real estate.  I have a difficult time with individual stocks now, with all of the academic research suggesting otherwise.

Anyway, I'm still diligently following the simple but difficult to maintain process of day-in and day-out, trying to control my spending, saving wisely, and then deploying that capital in a consistent, diversified manner with the ultimate goal of trying to grow my passive income.


This month I received $1508.54 in passive income. What a blessing! Here are the details:

Dividends and Rental Income Received




As you can see, I had some more expenses with my Missouri property, causing negative cash flow.  I unfortunately have to report more expenses for April's report, and am now considering selling the property.  We'll see but this property may leave my portfolio after this tenant cycle.

Purchases
Nothing fancy....just continuing to add to our ROTH IRAs when possible.  About $1-2K or so.

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 March total in 2017 of $959, my YoY growth for this month was 57%. I continue to see very large growth, which is great.  The only way to sustain it however is to buy another property, or heavily invest in asset producing income.  We'll see...may buy a 5th property sooner if a deal comes my way!

With the addition of this month's income to my Progress Tab I now have earned $3505 in total this year in passive income.  Little behind my desired pace, but the best quarter I've had.

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

Dan

13 comments:

  1. Nice dan. Curious why your thinking of selling missisouri property? Big costs or tenant related?

    Congrats on a solid month
    Cheers

    ReplyDelete
    Replies
    1. Hey thanks Passivecanadian! Yea, the Missouri property was my first real estate purchase and it definitely has been my 'problem' property ever since. I've got really low margins and very little cash flow, a bad property manager, and tenants that complain about a lot. :) All around not a good situation. Couple that with some high vacancies and very little price appreciation and I'm thinking it might be time to move on. Over the six or so years I've had it, I think we'll only make around $20k if we sell, which may sound like a lot, but really isn't. Thankfully we didn't put any money down with this property, so the profit is nice, but I think the time to move on is approaching. :) Take care!

      Delete
  2. Dan,

    Over $1,500 total for the month and a 59% year over year increase. That's what I'm talking about, even with a poor month for the Missouri property. Are these short-term problems? Or are you expecting many more negative months from this property if you decide to hold onto it rather than sell?

    Bert

    ReplyDelete
    Replies
    1. Hey Bert, thanks! My Missouri property seems to have a bunch of random expenses always. So I would say, yes they are short term, but they are frequent enough to be considered long term..lol. I am pretty certain next summer I am going to sell. We'll see, but I am growing tired of this property. Thanks for stopping by!

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  3. Hi, Dan. Over $1500 is awesome, split fairly nicely between RE and stock/bond investments.
    I'd be inclined to cut loose the Missouri property as well if it wasn't meeting expectations.... sounds like you've had it long enough to give it a chance to succeed. However, trading RE is much more expensive than trading securities thanks to the commission. Are you able pay less than the standard 6%?
    Also, I saw you had Vanguard Wellington (VWELX) in your list of dividend payers. I like this fund quite a bit, and am a holder myself.
    Congrats on a great month!

    ReplyDelete
    Replies
    1. Thanks Engineering Dividends! Yea, the 3,6,9,12 are fairly even between real estate and stock/bonds, but every other month is dominated by real estate. It's much easier to develop large amounts of cash flow from real estate than it is from equities and bonds.

      As for the Missouri house, I am not sure what to do. :) Still deciding. Part of me wants to sell and take the equity to buy a minivan (getting to that point with the kids! haha)

      And YES, Wellington is one of the best. Big, big fan.

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  4. Great job for the month even if the MO property was a bit of a drag. Still, as I said the last few months, your rental picture is a lot healthier than it was about a year or so ago. You have come a long way. Of course, nice divvys coming in too. Can't forget those. Keep it up!

    ReplyDelete
    Replies
    1. Thanks Keith, yea, the RE is pretty solidly in the green every month now. I'm going to just continue to de-lever and invest on down days, and then maybe buy another property in the next year or so. Thanks for stopping by and you keep crushing it too!

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  5. 1.500 usd is a nice amount of passive income. I am also thinking about buying 1-2 more rental properties (currently having only 1) but owning multiple properties could also mean less spare time.

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    Replies
    1. Thanks Passive Income Guy! Yea, rental properties CAN be an incredible wealth builder. Finding cheap financing is getting harder in the US with the rise of interest rates, so I think the best time to buy is perhaps past, but with a good deal it can still work! Take care!

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  6. Nice month. $1500 AND growing over 50%. That's awesome!

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  7. Congrats on a solid month PID and it's nice to see that real estate income coming in. I'm looking to buy my second home either later this year, or more likely a year from now. I want to get to the point where I have a healthy passive income coming in from both real estate and dividends.

    Good luck if you decide to sell the Missouri property and/or purchase another one.

    ReplyDelete
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    ReplyDelete