Live Off Dividends

Passive Income and Personal Finance

Month: November 2017

Rental Property Update: October 2017

I apologize for the late post I’ve been very busy the past couple weeks. This was a pretty good month for my owner occupied rental property. My father and I still haven’t closed on the three properties we’re partnering on. I would be pretty surprised if we actually closed by the end of November. With the holiday this week I’m not convinced the lawyers will be working too hard on our closing. Possibly the week after but I really don’t see that happening, I’m expecting the first or second week of December.

As of October, it now costs me an average of $195.09 to own/live in this rental property. I paid my typical $60.78 additional on the principal. I still would like to pay more towards the principal but I’m still hesitant to make any changes to any of my finances until we do finally close on the next three properties.

My utility bill has continued it’s downward trend which I’m very happy about. I informed my tenant that the rent will be increasing from $650 to $675 come February. I haven’t given her the new lease to sign yet but I assume there will be no issues there. I didn’t have any miscellaneous expenses this month which is always nice. Aside from last month when I received my STAR rebate, this was actually the best month I’ve had since April.

For those of you who want to invest in real estate but can’t afford a down payment or don’t want to worry about fixing things when they break RealtyShares may be a good option for you. It is an online investing platform that allows you to invest in commercial and residential properties with a much smaller investment than would be required to purchase real estate out right.

It’s pretty cool to know that most months I could live in this house for less than $200 per month, especially if I didn’t pay any extra towards the mortgage. It sure beats paying $800+ per month to live in a single family home. I originally started writing these posts anticipating closing on the three other houses, which would give you guys a lot more data to look at as well as a better picture on what a rental property might cost you (or make you). With the delayed closing it has just been updates on my owner occupied property but I still feel that it’s valuable and I will forever stand by my opinion that it is absolutely worth buying a multi family for your first home.

This house doesn’t make money with me living in it, but it still saves me a ton of money every month. I would have a lot less money and very little equity in this house if it were a single family. If I didn’t live here this house would probably average somewhere between $600-$650 per month in profit. If I put all that towards the mortgage from day one the house would be paid off in exactly 6 years. Here are all my monthly rental property updates to date if you would like to catch up!

Net Worth Update: October 2017 +$1,148

Not the best month for my net worth but it went up and that’s enough to keep me happy. My net worth is very much dependent on what the market is doing so a good month for the market means a good month for my net worth. My high savings rate helps to counter act bad months for the market.

For those wondering, I use  Personal Capital to help track my net worth and I highly recommend giving it a shot (it’s completely free). You can link all your accounts and it does all the work for you. It also gives you access to a bunch of really cool tools, like the investment checkup tool.

Personal

My home value stayed the same at $100,000.

My truck value decreased from $7,463 to $7,261. -202

Total: -$202

Investment Accounts

Robinhood account increased from $44,181 to $44,747. +$566

Roth IRA increased from $14,780 to $14,986. +206

457b increased from $7,122 to $7,652. +$530

NYS retirement account increased from $3,595 to $3,683. +$88

Total: +$1,390

Cash

My cash decreased from $8,899 to $8,799.

Total: -$100

Total

Total assets increased from $186,128 to $187,128. +$1,000

Mortgage

My mortgage decreased from $59,003 to $58,855.

Total: -$148

My net worth heading into November is $128,273 up from $127,125 last month! This was a $1,148 increase or a 0.90% increase.

 

My year over year net worth increased by 105.31%! That is, $62,476 last October to $128,273 this October. I can only hope to see this kind of growth by this time next year.

I recently found all my old net worth data dating back to January 2016. As you can see by the chart, I was spotty in recording it. I’ve found that tracking my net worth motivates me even further to increase it. So, I will continue to do so and track the results. Since I’ve began tracking my net worth again I haven’t had a single month where it has went down. Again, I encourage everyone to track their net worth and Personal Capital is a great tool to help you do so.

Here are the rest of my monthly net worth updates if you want to check them out!

Age

I think it’s important to track my age and where I fall percentage wise in my age group as well. I just turned 24 years old and my net worth puts me in the 96th percentile. I was playing around with the calculator and it looks like I should be able to break into the 97th percentile before I turn 25! That’s pretty cool to me, though once I do turn 25 I enter the 25-29 age group and I drop way down.  Also, here’s the link that I use to calculate that.

This post may contain affiliate links.

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Dividend Portfolio Update: October 2017

This was a typical lackluster first month of the quarter for my dividend portfolio. I have to admit looking at the first months of each quarter last year, I’m quite happy with the numbers I’m seeing this year. If I can stay at this pace I may only see a couple months next year that I receive less than $100/month in dividends.

For those wondering how I make free trades and pay no commissions, I use Robinhood for my dividend portfolio. If you want to sign up, use my link and we’ll both receive a free stock valued up to $150!

These are all the companies that paid me dividends in October amounting to $85.73.

I received $5.81 from dividends in my Roth IRA this month. This brings my yearly total to $220.18 and puts my monthly average for the year at $22.02. I still have one more big month for my Roth coming in December!

My dividends year over year in October increased from $43.26 to $85.73. This was a 98.17% increase year over year. For 2017, my average monthly year over year increase is now at 101.27% (excluding January’s 3,558%)! October just fell short of my yearly average, but I’m not complaining.

 

I received a total of $920.90 from dividends in 2016. I’m currently at $1,150.19  this year which is 124.90% of 2016’s total. I’m already about 25% up on 2016’s total and I still have 3 months to bring that number even higher! I might even manage to hit 175% of 2016’s total this year, that would be amazing!

My total annual dividends increased this month from $1,411.69 to $1,478.67, while my average monthly dividends increased from $117.64 to $123.22. This was a 4.74% increase month to month! For 2017, my average month to month increase is now at 1.64%, my portfolio overhaul had a large impact on this number, it would be around 2.39% excluding April, so I expect to be closer to that number next year.

For those of you reading this post wondering how to get started investing, I have written an ebook that outlines just that. It is called Investing In The Stock Market: The Complete Beginner’s Guide. You can check it out here, or click the picture below.

I realize the chart above is small/kind of hard to read. But, if you’re reading this a web browser (not from Facebook) you can zoom. I will work on this issue going forward. I’ve decided to start including a dividend calendar into my monthly posts. The company’s in blue and green are ones that I still own. The company’s in red are companies that I’ve sold throughout the year.

Purchases:

October 6: Purchased 4 shares of PEP at $110.16 for a total of $440.64.

October 6: Purchased 1 share of O at $56.48 for a total of $56.48.

October 24: Purchased 53 shares of O at $55.36 for a total of $2,906.47.

 

Sells:

October 18: Sold 15 shares of IBM at $160.51 for a total of $2,407.65.

Contributions:

Total: $880.00

Dividend Increases: 1 Increase

AbbVie increased their quarterly dividend payout from $0.64 to $0.71. This was a 10.94% increase and will earn me an extra $6.72 annually or $0.56 monthly.

 

This chart shows my average monthly increases from organic dividend growth ( growth from companies increasing their dividend rather than growth from additional capital invested ). My average monthly organic increase for the year is now at $0.50 up from $0.49 last month. A goal of mine is to get my portfolio to the point to where my organic growth matches my growth from additional capital invested and then eventually surpasses it. For 2017, my average monthly growth from additional capital invested is at $1.67. This number is much, much lower than it should regularly be. My portfolio overhaul affected this number as well. Excluding April this number would be about $2.50, so that is my goal for organic growth as of now.

Rental Property: $650

I received $650 for rent in October.

I’m still behind 11 contributions to my dividend portfolio totaling $4,840 from when I was injured at the start of this year. I also haven’t contributed anything to my Roth IRA for the year yet, so that’s another $5,500 that I need to come up with. We still haven’t closed on the three properties so I’m hesitant to tap into my savings until we do.

Here are all my other monthly Dividend Portfolio Updates if you want to catch up!

Leave a comment and let me know how October went for you! I look forward to hearing from all of you every month!

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