July was a busy month as I was focused on closing escrow on my first rental property. As a result, there were some additional costs associated with closing. The appraisal and credit report totaled $461 and the HO6 insurance was $340. Title transfer fees, and other various closing fees came out close to $3000. Since buying an investment property is not something I foresee doing on a monthly basis (wouldn’t that be nice?), I’ve decided to omit these charges from the standard Monthly Expense Report.
Without taking into account for the new property, my total expenses were in-line with what I would usually expect to save. Gas expenses went up a bit this month as I was forced to drive around a lot (to the title company, bank, meetings with real estate agent, etc). This expense will likely increase even further in August when I start visiting the rental on a regular basis to make repairs and do installations to ensure it is move-in ready by September.
Food expenses were kept to a minimum this month as I was able to make week long business trips and expense most of my lunches and all of my dinner meals. I won’t have this luxury moving forward, as I have since resigned from this company. The new company probably won’t have me travelling quite so frequently either.
Total savings for this month were about ~75% of net income. I am pleased with the results, and I am hoping to increase this percentage next month. I received a boost in salary by ~20% by taking on a new position, and again, I have no intentions of inflating my lifestyle. Expenses should be roughly the same, so the savings rate should only increase.
Dividend income this month was low, as Coke (KO) was my only holding to payout. Year to date dividend income is over $300.
On a last note, I have met with a tenant, and we’ve agreed to terms on a 1-year lease on the rental. Monthly rent will be $2100. Based on my calculations, this will net ~$400/month in semi-passive income. These calculations assume a property tax value of $3600/year, or $300/month, which I am hoping are over-estimates of the actual costs. Exciting times!
|Other / Fun||$117.74|
Here is an update on the dividends received this month:
|Year to Date||$317.84|