Saturday, March 26, 2016

Weekly Roundup - March 26, 2016


Another week down but this time I finally got the call to head back to work.  Having the month off was great but it really puts a hurt on my income.  The even worse part about being home that long is that it makes it so much harder to leave again for work.  As you can imagine when your typical schedule has you home for a week, tops, it gets really hard to leave when that stretches out to a month.  Since we still haven't reached financial independence, it's back to the grind stone.
I happened to be looking through my emails from the past month or so since I wasn't really keeping up to date with them while home and saw an interesting one regarding one of the possible rentals properties I had looked at before.  It's been forever since I looked at that property and I didn't keep detailed records of whether it needed updates or was good as is, but man was I shocked to see what kind of cash flow it could provide now.

It's a 3 BR/2 BA home in the neighborhood where my wife and I had previously been renting.  The list price at the time was $79,229.  Using my assumptions for down payment, rent and expenses the property would have provided over $2,250 in annual net income.  That would have worked out to a 11.4% cash on cash return.  So you can imagine my surprise when I saw the email saying that the property was listed for rent at $1,475 around 2 years later.  If everything else stayed the same, with all the contingencies rising with the rent, the annual net would be over $5,400 with a cash on cash return of 27.3%.  Maybe I should have investigated that property a bit more!

I'm just about finished reading Pat Dorsey's book on successful stock investing and I highly recommend it.  Even though it's not about dividend growth investing there's a lot of great information in there in regards to both quantitative and qualitative evaluation of companies.  I'm not sure what book I want to tackle next but I have at least another 8-10 in the running.


In my rush to load up my car to head back to work I left my copy of The Devil's Financial Dictionary by Jason Zweig (affiliate link) at home so until I get home again the weekly definitions will be on hold.

Blogging/Writing

The great thing about being back at work is that I'll finally get back to writing on a more consistent basis.  That's one of the great advantages of my job since as long as things are running smoothly I can work on writing/blogging for the majority of the hours that I work.  So I get to kill two birds with one stone by developing a second income source while working on my primary one.  I've got some ideas in store for some articles that I hope to get cranked out over the weekend and throughout next week.

Self Improvement

I didn't do much in terms of self improvement over this past week in the form of working out.  But we're the proud owners of a 9 year old lab that has the energy of a 2 year old lab so I try to take him on a daily walk.  The great thing is I get to benefit too through exercise and listening to podcasts.  We logged almost an additional 11 miles from Monday through Wednesday which pushes my monthly mileage up to 37 so far.  I'm still trying to settle in here at the rig but hope to get back to walking at least every other day.

On to the Roundup

In case you missed them, here's the posts from Passive-Income-Pursuit this past week.
Also, be sure to sign up to receive posts via email and to follow me on Twitter@JC_PIP so you don't miss anything.  I also started a Facebook page to give people another option for keeping up to date on posts and happenings with the blog.

Once again I'd like to say thanks to each and every one of you that read, commented, and shared posts from here this past week.  I think this dividend growth investing and financial independence community is amazing and the openness from everyone is awesome.  Thanks again!

Now on to the links!

Passive Income Is Much More Valuable Than You Realize by Financial Samurai

What's Our Money Really For? by Our Next Life

Don't Sell Yourself Short...Ever by FI Fighter

Two Tips for New Investors by Income Surfer

Geographical Revenue Diversification of My Holdings by Roadmap2Retire

Dressing Up Your Dividend Portfolio by DivHut

The Long Road Ahead to My FI Crossover Point by Dividend Life

Boost Your Dividend Income with Covered Calls: The Step-By-Step Guide by Sure Dividend

Markets Will Always Present Opportunities for the Patient Investor by Financially Integrated

How to Earn $95,000 in Qualified Dividend Income, and Pay No Taxes by Dividend Growth Investor

Top 5 Dividend Aristocrats Using the Best Value Rankings (with a special guest) on Retire Before Dad

Two Powerful Mental Models: Network Effects and Critical Mass by 25iq

Spoiled Rotten Investors by The Conservative Income Investor

Also, if you're looking for investment ideas, A Frugal Family's Journey keeps a list of stock analyses and recent buys from fellow bloggers.

I hope you all have a great weekend!

Image courtesy of Gubgib on FreeDigitalPhotos.net.

8 comments:

  1. Thanks for the mention, JC.

    Ouch - that sounds like a good property investment that could've worked out well. Live and learn. Hopefully more opportunities will come up in the coming years.

    Have a great rest of the weekend
    R2R

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  2. Thanks for sharing my tips for new investors buddy. I hope you had a good week at work, and am glad you got the call. Sorry the rental property didn't work out, but if oil prices don't rebound you may be flush with new opportunities. If we only had the time, I'd tell you all the opportunities I've identified.....and then let slip through my fingers. All we can do is keep looking, and grab the next one. Out of curiosity, was this house the one I pulled up the flood information for?

    Have a great weekend buddy
    -Bryan

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  3. Thank you for sharing this story about the rental property you had investigated. I know absolutely nothing about real estate investing, but i am trying to learn. I believe that you can generate good yields on rentals in Texas.

    RE an area where you can earn high returns due to leverage (though you have higher risk if things dont work out)


    Thank you for the mention as well.

    DGI

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  4. As always, nice selection of articles. We have sunrise service in the morning but hopefully I'll have a chance to read through a few of these before lunch. Hope you have a great Easter JC!

    AFFJ

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  5. Many great reads as always. Thanks for compiling and for mentioning DivHut as well!

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  6. Thanks for compiling another great reading list! Best of luck back at work and I'm looking forward to seeing your posts in the coming days!

    Take care
    FerdiS, DivGro

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  7. Hi JC,

    Thank you for including my post in your weekly roundup!
    I'm interested in what book you read next. I'm currently reading Stocks for the Long Run by Jeremey Siegel which is interesting and I'll write a review when I'm done.

    Best wishes,
    -DL

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  8. I have been following you for a few months now. You have some great information on your site so thank you for it.
    I never knew that there was a group of you and other bloggers in DGI. It's nice to find some people I can relate to!
    I just started reading Pat Dosey's book. So far it's an interesting read to me because of the information regarding analyzing companies which I think I néed to learn more about.

    On the rental house front, I recently purchased one which needed to be renovation. Let me tell you, it was ALOT of work. When it is your third job (1. Family, 2. Your current main income source) , it can make it challenging. It is something to keep in mind if you don't have alot of time.

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