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.
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.
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.
- Minimum Wage Jobs Suck
- Dividend Growth Investing at Work - 85 Increases in 23 Years
- Dividend Growth Investing at Work - 38 Years of Dividend Growth
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.