March, like February, was pretty normal in regards to income from my two rental properties. I spent time this month checking out different properties and, as I wrote in a previous post, I found house #3 which is currently being renovated.
This month’s numbers are:
House A
| Item | Amount |
|---|---|
| Rent | $795.00 |
| Mortgage | -$316.67 |
| Insurance | $0.00 |
| Taxes | $0.00 |
| Management | -$79.50 |
| Cash flow | $398.83 |
House B
| Item | Amount |
|---|---|
| Rent | $725.00 |
| Mortgage | -$413.49 |
| Insurance | -$30.58 |
| Taxes | -$72.68 |
| Management | -$72.50 |
| Cash flow | $135.75 |
Since it’s the end of the first quarter of 2015, I spent some time looking at the goals I defined for this year and checking where I’m at with each. Here’s a quick review:
- Finance goals:
- Save at least $45,000 – So far this year, we were able to save $12,000 which puts us slightly above our monthly goal of $3,750.
- Purchase 3 additional properties – I plan to purchase my third rental property next month so we’ll be at 1 out of 3 for the year.
- Grow my net worth to $150,000 (it’s currently at $100,000) – Since the savings are going well, we’re on course with this goal. Other pieces that are working to my advantage is:
- Amortization – the fact that rent paid by my tenants is paying off the mortgages and specifically the principle I owe means that I own more of each house (slowly but surely). I’ll calculate this and blog more about it towards the end of the year.
- House value increase – House prices going up will also contribute to the net worth goal.
- Real estate income – Besides saving from the income we receive from our day jobs, we also have a stream of income from our rentals which is helping our net worth grow. Some of the cash flow we use to make additional payments on the mortgage and reduce the principal, but the rest is accumulating and working toward building our net worth.
- Personal goal:
- Start a family – We’re pregnant! Super cool and super exciting! It’ll be interesting to see how having a baby will affec our ability to continue saving.
- Passive REI blog goal:
- Write one post per week – I haven’t been doing well in this area. I’m currently at about one post every two weeks, so I will need to spend more time on the blog since there is a lot I’d like to share!
So that’s how 2015 is starting out! What do you think?
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