Aah, it feels good to be back again. It’s been… how long? Around three months since I’ve posted on Divnomics… How that could happen?
Simple. I needed the time for other things (and myself).
The job became somewhat stressful, I had a wedding to plan and we were making big steps in our real estate business. It was a classic case of having too much going on. Blogging quickly became a must instead of something of pleasure. So I decided to cut in a short blogging break, which lasted a bit longer than expected.
And it felt gooood. It gave me the opportunity to free up my thoughts on other things that were important to me. And now, it is about time to share again. And better later then never, there were quite a few things that happened while Divnomics was on radio silence.
In the past 3 months or so, many things have happened. Of which one was our wedding at the end of May. And I can honestly say it was one of the best days I’ve ever experienced. Smashing down 20k for one day sounds crazy (and it is) but it was more than worth it. We celebrated with 130 close relatives, friends and coworkers on one of the best summer days we could have gotten. We have enjoyed a lovely honeymoon in the most beautiful place, Tuscany in Italy.
And if there are two things I have learned in the past weeks, it’s this:
- That summer home is coming… When and where I don’t know yet. But one day we will own our fat-fire estate.
- Family and friends are everything. Life means nothing if not to be shared with your loved ones. Although working, blogging and real estate will each have their place, family and friends will get a bigger piece of our precious time, now and in the future.
A small recap of the past few months: We spend bucket loads of money, can call ourselves Mr. & Mrs. (still have to get used to that though…) and have 3 properties earning an income for us. Besides spending money on the wedding, I’ve also treated myself with something extra special. Something I wanted for more than a year now: a motorcycle!
You can figure our savings ratio took quite a few hits the past few months. Besides blogging, keeping track of spending was also something I didn’t do that well… So, we will have to see what happened there when I’m calculating our Cash Flow Index for the next blog post.
One thing is sure though. We had to dip in our savings fund. Although we preferably avoid this as much as possible. For now, I’m okay with this. We have made several choices the last couples of months. And due to that, we have to cover for it somehow. Since these one-time events don’t occur very often, the savings can get back on track once this month is over.
On real estate
The first of March we received the keys to our third rental property. As I shared with you in our last real estate update. It’s a multi-unit asset which houses 4 tenants and a commercial unit. A big investment for us to make, but also made possible by working together with an investment partner.
Since then, in all three units, tenants have been moving out. Something we didn’t expect to happen that soon. We’ve already found new tenants for 2 units, and 3 others will leave in the coming months. Luckily for us, the demand for proper housing in our area is so high, we can find new tenants in a matter of days. It does provide some extra time spend on properties we rather wouldn’t have had. And we are currently looking for alternative and less time demanding ways to deal with finding new tenants for our properties.
Maintenance is still a thing, as always. In real estate, and especially with some of the older properties, maintenance can eat up a big part of the pie. Every time we think this was the last one, next month is knocking on the doors again. This time we had to deal with a not working shower drainage in property #2 and some small esthetic fixes to property #1. Nothing we couldn’t handle.
As you can see, our rental income keeps growing and growing. Our net rental income is based purely on the cash coming in. Or in other terms: gross income – all costs (incl. mortgage payoffs) = net rental income.
To get it even higher there is only one way to do so: finding and buying more properties.
Which is exactly what we did.
We first had to go over the barrier of dealing with a deal that backfired. We almost signed the contract, but there were some… uhm complications with tenants. And the deal was off. We moved forward and starting asking around more often.
Since we started focusing on building a network, it has paid off big time. A fourth property is on its way! We have raised the necessary funds and received the keys last week. It’s an apartment in a different city then we are invested in so far. The market has been rising to new heights, leaving the conditions in our current area as less favorable to us. Prices are easily above likable values and investors are like vultures, hovering around and picking up everything they can find.
Even though the market is soaring, we manage to find some deals that return more value than others. Which is exactly why we continue to invest and managed to sign for a 5th property yesterday!
Besides this, we are setting up some other things as well. I won’t go into too many details yet, but we are having big plans that will lead us forward to financial independence.
For now, we will just call it Project R. A business we are to set up so we can have various income streams coming in beside rental income. We will be less dependent on our rental portfolio, spread out the risks more and reach FI sooner than we imagine.