We’re going to start things a little different this month. In the past I combined both net worth and cash flow in the same report. I feel by doing this, I may have put more time into reporting net worth and half-assed the cash flow report. Instead we will break these out into separate posts. From here on, I will post monthly income reports and either monthly or quarterly net worth updates.
Let’s get started:
You may recall from June’s net worth and cash flow update, that we came in around $635 for the month. This was mainly due to a new investment property we picked up in April. Holding costs associated with the new mortgage and credit card interest for repairs were the primary reason for this. We managed to rent the property this month and received a pro-rated payment for the remainder of the month that at least covers the mortgage.
As a reminder, for the purpose of these monthly reports, income from real estate, dividends from stocks outside of our 401k’s and side jobs are calculated here. We were recently approved for google adsense and will start including any profit realized from blogging. I don’t expect this to be significant for at least a year, maybe longer, but we might as well start tracking it. Let’s move onto July’s numbers.
June’s cash flow update was a rough estimation and I may have missed a few expenses. To prevent that from happening again, I’ll be keeping track of everything in a spreadsheet. If you happen to not like spreadsheets and want something a little more robust for managing and tracking your rental properties, give Buildium a try. They have a free 14-day trial with no strings attached. I’ve ran through the trial myself and personally know investors that use it regularly. The software is pretty awesome, but I think it’s best for investors with 8+ units as the minimum entry point of $45/month covers up to 40 units. If you only have 1 or 2 rentals, spending the money doesn’t make sense, but when you start breaking double digits, you should definitely consider Buildium. Now for those of you with only a few rentals, I highly recommend Cozy.co. I do not receive any affiliate income from Cozy but that shouldn’t be a factor when making recommendations. They don’t have the robust reporting that Buildium has, but it more that sufficient for a few properties.
July Rental Income
Note the classifications of A, B, C are primarily used for commercial real estate, but I want to go ahead and include them so you have an idea of what types of properties we are investing in.
There you have it, we cleared $521 on our real estate investments after all expenses. Next month should increase and steady out as all rental properties have 100% occupancy.
The chart below outlines all of our stock investments. I am only including monthly dividends from stocks outside of 401k. These funds can not be touched and ultimately do not help my early retirement goals. Some accounts like the TSP do not actually break down the dividends, so it’s easier to just exclude them.
The broker I use for dividend stocks is Robinhood. It’s one of the only brokers I could find that charge $0 for trades and a $0 monthly fee. If you would like to join, please use my Robinhood affiliate link and we will both receive a free share of stock. I can only receive a maximum payout of $500 in stock for this offer, so I will remove this link once we hit that mark. There are plenty of other great brokers out there but there are few that have zero fees and this is critical if you’re just starting out and want to earn income from dividends. If I had used a different broker, I would be negative $200-300 with the tiny purchases I have made throughout the year.
Seeing as we only have $2000 outside of 401k’s, the dividends are going to be minuscule for a while but you have to start somewhere. We cleared $1.54 in dividends for July. I will do my best not to spend all of this at once :).
Now that we have adsense income, I’ll begin adding this to the monthly income reports. Just like the dividends listed above, this is going to be low for quite some time. I’m expecting income to pickup in 12-18 months.
If you have your own blog, you need high performance servers. I see a lot of people posting referral links for bluehost, but you’re not going to get high end SSD servers going this route. Instead, I choose to use Inmotion Hosting. I spend $8.90/month and can host up to 6 websites at no additional cost. My cost basis includes a static IP address and my website is hosted on an SSD server. Have you ever heard of people complaining of slow speeds from other providers like godaddy? That’s because they cram 50-100 websites on a single server and don’t use SSD’s. Now I do get referral fees if you join, but it’s pennies compared to bluehost. Regardless, I will not push any products I do not personally use or believe in.
There you have it, we earned an additional income of $524.07 for the month of July. We can increase this figure by adding to our real estate holdings and by continuing to read and learn. Income from other avenues such as dividend growth and blogging will also increase in time with the proper education and effort.
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