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Back Again… I think!

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Wow, so a lot has been going on these past few months~ I haven’t been able to update this site as regularly as I would like, but I’m hopeful that all the “excitement” is now over, and I can regain my normal schedule/routine again.

In short, here’s what’s been going on:

  • Closed Rental Property #2 and rented it out for $2150/month. Spent about $20k in repairs (more than I originally budgeted for).
  • Had to cash out all of my remaining dividend stocks to pay for the renovation. As of today, I own 0 shares and my dividend portfolio is worth $0.
  • Had to deal with another renovation in my own residence which meant sporadic internet connection and lots of stuff moving around. That’s finally complete now, so hopefully I can update this blog more regularly again.
  • Work banned all internet traffic that’s non-work related. This made it even more difficult to check in on this blog…
  • Took a gamble and bought 260 shares of Tesla Motors (TSLA) stock before earnings for a cost basis of around $55/share. For some reason, I started seeing the Model S EVERYWHERE, and just had a hunch the stock would skyrocket. I sold ESPP stock to fund this. I know, I realize I’m committing Dividend Growth Investing treason since I’m a believer in DGI … This type of strategy definitely does NOT fit my long-term gameplan. It’s a gamble, and I know that. I’m taking that risk for now…
  • Am starting to consider out-of-state investment properties. I’ve been meeting with some contacts and am learning that it is very possible to achieve 25%+ cash-on-cash returns. These type of returns simply don’t exist in my own real estate market, and I’m not good enough with stocks to even attempt to achieve this. I’m intrigued and am doing research to learn more about these opportunities. Again, I believe in cash flow, and whether it be from dividend stocks or real estate, if I can get those type of returns, I’m all ears!

That’s all for now. Have a great weekend everyone!

{ 8 comments… add one }
  • JC @ Passive Income PursuitNo Gravatar May 12, 2013, 11:01 am

    Hopefully things will finally settle down. Sounds like you’ve been very busy this year so far. While it’s a shame to see your DG portfolio back at $0, it might not exactly be the worst time to have been cashing out with the markets being at least fully valued if not overvalued. I think the fundamentals can still support this price level, but with very few down days I would be very surprised if we don’t get a pull back soon. At some point a wave of profit taking will come along. How much of the rent for property 2 is positive cash flow? Glad to have you back.

    • FI FighterNo Gravatar May 13, 2013, 8:03 pm

      JC,

      Yeah, it’s only temporary, and I know I’ll invest again once the market corrects, or when I have some more funds available. I did have some ESPP come in recently, but decided to take a risk and buy some TSLA. This was more an anomaly than anything, as I do want to get back into DGI soon.

      The property cash flows about $400/month, but that’s mostly due to the fact that I put so much upfront into it. It wasn’t a very good deal for cash-on-cash returns, but then again, most deals are pretty terrible in Silicon Valley. The appreciation is what makes up for it… I may have to cash out sooner than later…

      Cheers!

  • Brick By Brick Investing | MarvinNo Gravatar May 12, 2013, 11:20 am

    Glad to see you back on the radar my friend! Glad you got the property rented out, I have to admit I chuckled at your gamble, I’m curious to see how it turns out. Hope to see you back on a regular basis, have a good one.

    • FI FighterNo Gravatar May 13, 2013, 8:05 pm

      Marvin,

      Thanks! Good to be back 🙂

      Yep, I’m taking a a gamble here! I’m not much of a trader, but sometimes you just have to go with your gut. I’ll admit, it is a bit exciting tracking this as of late. But we’ll see…

      Take care!

  • MartinNo Gravatar May 12, 2013, 7:55 pm

    Fighter, nice to see you back. I understand your gamble. If it is a part of your plan and rules. For my “total return” covered calls I also use non-DGI stocks and I am completely fine with it as well.

    • FI FighterNo Gravatar May 13, 2013, 8:07 pm

      Martin,

      Thanks! Yeah, this type of gamble isn’t really built into my gameplan, but I also don’t follow any rules that are extremely strict. I have a main focus (DGI + real estate), but I’m ok with veering off the main road from time to time.

      Sometimes, you just have to take that chance and swing for the fences. Best of luck on your investments my friend!

      Cheers!

  • LeighNo Gravatar May 13, 2013, 9:49 pm

    Welcome back! I don’t post nearly as much anymore – there’s just not that much to talk about when my finances are more boring with most things chugging along on autopilot. I am figuring out the credit card rewards game though.

    Congrats on rental property #2! Glad you got it rented out! Now do we get to see some photos? 😉

    • FI FighterNo Gravatar May 14, 2013, 9:49 pm

      Leigh,

      Thanks, good to be back! I hear you –chances are, if you are making good financial progress it’s a boring process.

      Oooh, the credit card game sounds like fun! I recently signed up for 4 credit cards. I’ll probably write a blog post about it soon. Since I also plan on retiring earlier, I’m already starting to look into ways to maximize free hotel/travel.

      Yup! I’ll be posting new photos shortly.

      Take care!

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