March 2012 Income Report

Well, since I’m no longer anonymous I’ve decide to be a bit more upfront about our income. No, no, no, not our personal income. No way am I telling you that and getting karate chopped by Mrs. YFS… Hey, I don’t have to say that anymore now, do I? Mrs. Brown.. ahh that’s better.

I’m not telling you my personal income because my wife wouldn’t like it, and I still have a day job, and last time I checked it wasn’t too smart to tell your co-workers, who secretly read your blog, how much you make. I also don’t want to hear shit from our facebook friends or real life friends. I hate when people say “you got it” or “put me in your budget” ughh…

Enough rambling, onto the numbers!

 

Blog Income

 

Well, Google got word that I was starting to make some money with this blogging thing and they started hating.  Big G, doesn’t like when new guys come into town and start trying to take over the corners so they sent some goons out and cut my legs off.  Not literally but in the blogging sense.

Google’s pagerank goons dropped my page rank to 0.  Which pretty much dries up your ad revenue.  Despite the setback they could hold me down and I at least made a few bucks this week.  The weird thing is, despite the ginsu knife being put to my page rank, my search traffic, daily visitors and email subscribers jumped up significantly!

When my page rank dropped I channeled my inner Senator Clay Davis from the wire and let out a…

 

Shiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiit.

 

Senator Davis does it better.. so check out the video below:

 

In March, I made $645.  That’s a 65.7% decline in blog revenue.  You know what they say.. Live by the Google and you die by the Google.  They don’t really say that but, imagine if I thought my blog was a business venture and I depended on ad revenue?  I would probably have some sort of panic attack.

645 bucks isn’t small potatoes but, when you’re used to filet mignon it’s really hard going back to hamburger helper :-(.     

Where did this money come from? I have two sources of blog income: staff writing and advertisements.

By the way if you need a staff writer, feel free to contact me at yourfinancessimplified (at) gmail (dot) com 

 

Rental Income

 

Now onto the 100% passive stuff. The juicy stuff! Most of you have read the posts:

Shit my tenants say
or               
How I Spend Only 30 Minutes A Month On My Rental Properties and Still Have Positive Cashflow

If you read those posts, you thought one of two things…

No way in hell does this guy make money because his tenants suck, or holy hell, I need to start investing in real estate asap!

Since the last income update many of you know we are in the process of adding another home to our rental empire.  I break down the next property in some pretty serious detail in this post:

We are buying rental property #3

Check it out and let me know what you think.

The funny thing is I got tons of emails asking me about my real estate process from the “we are buying property #3 post” and my february income update.  I kind of opened up a can of worms.  What i like most was the questions I received about risk, worst case scenarios and so on and so forth.  The main reason why I share the property details and the income is so people can scrutinize my every step.  More eye balls equals more quality assurance.

Here are the numbers for March

 

Property 1

Back Rent Owed as of 3/1/12 $300
Rent Due $922
Rent Received $721
Property Management Fee $72.10
Repairs $0
Back Rent Owed as of 3/31/12 $50

 

Property 2

Back Rent Owed as of 3/1/12 $459
Rent Due $808
Rent Received $800
Property Management Fee $80
Repairs $0
Back Rent Owed as of 3/31/12 $467

 

Rental money deposited in the bank = $1368.90

 

Other Fees/Expenses

 

Upon further review of other fees/expenses we decided to factor in possible increases in taxes, property insurance and include a “random shit” fund.  The numbers you will see below are 10-30% higher than the actual amount.

 

HELOC $138.68
Real Estate Taxes / Property Insurance / Random Shit $422.00

 

Total other expenses = $560.68

Monthly Cash Flow

Rental money deposited in the bank = $1368.90

MINUS

Total other expenses = $560.68

 

CASH FLOW = $808.22

 

This isn’t too bad for 5 minutes of work a month and an 100% passive investment. We are currently working on property 3. The more properties we add, the more money we will make and the sooner we can reach our goals.

Property 3 Update:  The seller finally got around to signing the contract and we will be closing within the next 2-3 weeks. 

 

Total Monthly Income:

 

The income sources talked about in this article represent 2 of our 6 sources of income.  In total we brought in $2,013.90 of revenue from blogs and real estate work.  We fully understand this is a long-term process.  It will take us a few years or more to be where we want to be income wise.  By adding assets at a pace we can handle and improving our processes and systems we will surely hit our mark.

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32 comments

  • Still a very good job with a PR 0.

  • That is some nice cash coming in. Is it a pain to have a tenant owing you money?

    • I don't worry too much about them owing me money. They eventually pay it back. One of my tenants is getting some government agency to pay her back rent. Apparently, there is a program that will help them out in a pinch. The other tenant will come through once state taxes are paid.

  • Congrats on securing the contract; how exciting!

    I have to admit that every time I read your posts, I always think about my own desire to build a rental portfolio. I don't have the cash reserves to do so yet, but I am planning to enter that world in the next 1-2 years!

    My advice for blogging is to set a realistic, flexible schedule. Mine can't be rigid given all of my other responsibilities, so I just aim to post a certain amount of times each week/month. This certainly frees me from the "gotta post now!" stress that I know some bloggers fall victim to. That being said, I don't make much of any money from my blog, so I don't know how helpful this is to you…haha

    • It took me about 1-2 years to pull the trigger on the real estate process. Keep learning and learning so when you have the fund the learning curve won't be so steep.

  • March 2012 Income Report…

    Blog Income Well, Google got word that I was starting to make some money with this blogging thing and they started hating. Big G, doesn’t like when new guys come into town and start trying to take over the corners so they sent some goons out and cut my…

  • Clearly some solid numbers even with the PR downgrade. The question will be what happens in the next few months with that.

    • Hopefully I can stay around the same amount so when Big G finally upgrades my page rank I can make some serious money again.

  • Just another reason why you need to diversify your income. Congrats on the successful month aside from the setback.

    • You do have a point. I'm going to look into pay for click things going forward. The good news is because of my search traffic my google adsense is picking up now.

  • $600 is a bad month? Geez…I'm going to keep working hard and hope for that kind of success! That's awesome (that it's not even that awesome…haha)

    • LOL.. well that is one way to look at it. It's just frustrating because I just starting making some serious money, the boom…

  • Hey, put me in your budg—

    I won't do it. I think $24k/yr. = a nice side income. I agree that it isn't where you want to be, but look at what you've built in a short amount of time!

    Besides, if you had any more money, you'd just waste it on exercise equipment, investments and more real estate anyway…. 😉

  • Good job with landing the contract. What's your time table on getting property 3 rent-able? You've got repairs to do, correct?

    • I have a few repairs to conduct prior to renting it out. My landlord gave me a 7-10 day time table for fixing the property up and getting it rented out. He expects to have it fixed and rented within 30 days of our closing.

  • "You live by the Google, you die by the Google". HA! So true… Sorry your blog got hit with their latest update. But like Joe was saying, it's nothing to scoff at. Money is still money 🙂

    • Yes the Google pimp smacked me.. I'll take the 600 bucks though. Just hurts to know it could have been so much more.

  • Geez my pr is 0 I would be ecstatic with 600. I made 50 cents and I am cheering. Keep building the realestate portfolio and sit back and relax and watch the monthly rent checks come in one at a time. I own a rental unit which is upstairs from where I live. I love it each month getting a check and using that check to pay my mortgage. I would love to add to my portfolio!

    • I always wondered how it is to live in a multi-family home with the tenant on the other side.

      Aside from the money is it more stressful to live so close to your tenants?

      • No i wouldnt say more stressful. We have just priced the apt right so that we weed out some of the people we do not care to have living below. I think price has been important for us. Also living below someone for 3 yrs you really start to tune out walking around. We have really been fortunate to have great tenants so far. My wife stayed home with our 2 kids until one of them was close to 3 she so having the house allowed her to stay home. I would love ot move out and the rent will more than cover all the expenses for this property so I am happy as we will be able to keep it as a rental. The yard also takes about 10 minutes to mow so it is very easy to maintain.

        • Sounds like a great investment! Unfortunately, where we live in VA there aren't any duplex's or we would have probably went the same route as you. Do you have a timeline for buying another home?

  • That really is quite impressive blog income. Especially since that is after a sharp decrease. And congrats on the new rental, hope the closing goes well. I'm not sure how much section 8 housing is around, I think most of them around here are larger apartment buildings, not so much singles or even duplex/4-plex places.

    • You can buy any place and make it available for tenants on section 8 or other forms of government assistance. Essentially, you have to apply to be on the housing list.

  • YFS, this is really good. I am putting my efforts in REITs right now do to the lack of time I have for physical property, but rest assured, if you stay within your plan and don't over-leverage. You will be very happy years down the road.

    • I have a little bit of money in REIT's but the return wasn't as high as rental real estate. ofcourse, it's less time/risk. As far as leverage, that's not my biggest problem (since my properites are cheap). My biggest problem is ridiculous property taxes.. 🙁 Can't avoid that, even if I bought the properties in cash and didn't HELOC the money out.

  • I have to admit that every time I read your posts, I always think about my own desire to build a rental portfolio. I don’t have the cash reserves to do so yet, but I am planning to enter that world in the next 1-2 years!

  • Big bucks man! I highlighted my own passive income as well, but excluded a lot of other income sources which aren't so relevant for my site.

    • The cool thing about real estate income is that it is in what the IRS calls the passive income bucket. So, I have a ton of carry forward losses in which I can write future income off on. I probably won't have to pay taxes on real estate income for a long long time. Especially, if I keep buying / renovating properties.

  • ok so there is space mountain. that is in magic kingdom. there is also epcot, and mgm studios… and there is the tower of terror in there. thats some hope it helps

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