Tuesday, December 24, 2013
Milestone Reached: $100,000 Lifetime Rent
I want to start this post off by saying MERRY CHRISTMAS to all visitors of this site, and a simple "thank you" for the support I have been given.
This month was great for me on many levels. I have successfully received over $100,000 of rental income. When I purchased my first property in 2006 I didn't foresee myself being a landlord. I really just bought the cheapest house I could find to suit my budget. When I was making $13.05/hr, my budget of course was tiny. This paid off in the long run because eventually it lead to greater cash flows.
After working construction and learning how to manage rentals, I knew real estate investing was something I could have success with. I managed to keep my overhead down by performing my own repairs and upgrades, while increasing my net income through a property manager. This formula has worked out well for me so far.
At this point I have 2 options for the future of my rental property portfolio. #1 I can either pay my mortgages off and improve my balance sheet. Or #2 I can throw down money on a down payment for a 4th property. Right now I'm leaning toward option #1. I found that once my properties are paid off I would reach FI and wouldn't need to worry about finding another job, ever. It would be a great feeling to know that all of my bills could be paid for by my rental income alone.
Once all mortgages are paid off I will begin investing into real estate and dividend stocks equally. Though stocks offer much less cash flow than real estate; they are less risky and provide much more stable forms of income.
Disclaimer: I am not a financial planner, advisor, or accountant. The financial actions mentioned were only suited for my own risk tolerance, strategy, and ideas. Copying another's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.