Blog Posts

The Dividend Report – Q2-2020

August 13, 2019 by Guy on FIRE 1 Comment

As many of my readers know, I love dividend stocks and believe dividends provide a great source of passive income. Quarterly, I provide updates on my dividend income, dividend goals and if I buy dividend stocks.

Using ‘The Dividend Report‘ section of my blog, I share the progress of my goals. I also share dividend growth stock ideas and thoughts. Additionally, I will share the rationale behind any future purchases or sales. Dividends are truly a wonderful thing.

The Dividend Report

For over three years, I have been working towards the same goal. I want my average dividend income to provide $1,500/month. As I solidify my path to financial independence, I want dividends to be 25-33% of my monthly retirement income. This goal may be revised upwards over time. I track my dividend income with Personal Capital and store the data on a Google Sheet.

In case you were wondering, real estate will provide the rest of my retirement income.

Q2-2019 Dividend Income

2019 is my 7th year of tracking dividend data! I’m making some huge progress this year. I cannot believe I’ve been tracking my progress for so long. It’s true what they say, what gets measured gets improved. It’s fun to watch the progress I’ve made over time.

The graph below shows my dividend income history since 2013:

dividend

The table below shows my dividend history since 2013:

dividend

As you can see from the chart and graph, my dividend income has slowly and gradually increased over time. This is one of the many joys of compound interest and dividend growth stocks. You can also see the presences of exponential growth in my dividend income.

Q2-2019 vs Q2-2018

Last year’s Q1 dividend income was $987.86. This quarter I earned $1,667.79. This is $679.93 or 68.83% more compared to the same time period last year. Imagine if your job paid you 60% more this year. There are two main reasons for the large increase in my dividend income. First, I have more money invested. Second, most of my stocks keep increasing their regular dividend payments. I also drip (dividend reinvestment plan) some of my dividend stocks. This means each quarter I own more shares of the same stock and collect even more dividends.

This quarter vs. last quarter

My Q2-2019 dividend income was $1,667.79. Last quarter (Q1-2019), my income was $1,288.85. This is a $679.93 or 52.75% increase from last quarter. The strong improvement is partially from individual stocks increasing their dividends and continuing to regularly invest. I still buy an index fund every week and aggressively contribute to my 401k.

Progress towards my goal

My average monthly dividend income is now $538.88 ($6,466.57 / 12 months = $538.88), which is 35.93% of my goal of $1,500/month. Previously, I was at 32.15% of my goal. I hope to build off this success and get even closer to my goal this year. My stretch goal is to achieve $1,500/month by the end of 2019. Candidly, this will be near impossible. However, I will continue to offensively build wealth and invest regularly.

New Purchases

I made no new individual stock purchases in Q2-19.

The Dividend Report – Q1-2019

June 22, 2019 by Guy on FIRE 5 Comments

As many of my readers may know, I love dividend stocks and believe dividends provide a great source of passive income. Quarterly, I provide updates regarding my dividend income, dividend goals and if I buy dividend stocks.

The Dividend Report

In case you were wondering, real estate provide the rest of my retirement income.

Q1-2019 Dividend Income

I’m pumped to share this dividend report with you. Quarter 1 of 2019 (Q1-2019) marks the start to another year. This means a lot of things.

2019 is my 7th year of tracking dividend data! I cannot believe I’ve been tracking my progress for so long. It’s fun to watch the progress I’ve made over time.

The graph below shows my dividend income history since 2013:

The table below shows my dividend history since 2013:

As you can see from the chart and graph, my dividend income has slowly and gradually increased over time. This is one of the many joys of compound interest and dividend growth stocks.

Q1-2019 vs Q1-2018

Last year’s Q1 dividend income was $492.98. This quarter I earned $1,288.85. This is $795.87 or 161.44% more compared to the same time period last year. Imagine if your job paid you almost 3x more this year. The large increase stems from a combination of more money being invested and most of my stocks increasing their regular dividend payments. I also drip (dividend reinvestment plan) some of my dividend stocks. This means each quarter I own more shares and collect even more dividends.

This quarter vs. last quarter

My Q1-2019 dividend income was $1,288.85. Last quarter (Q4-2018), my income was $2,458.38. This is not a great comparison as several of my funds pay two dividends in the 4th quarter (and do not pay a dividend in Q3).

Progress towards my goal

My average monthly dividend income is now $482.22 ($5,786.64 / 12 months = $482.22), which is 32.15% of my goal of $1,500/month. Previously, I was at 27.73% of my goal. I hope to build off this success and get even closer to my goal this year. My stretch goal is to achieve $1,500/month by the end of 2019. Candidly, this will be near impossible. However, I will continue to offensively build wealth and invest regularly.

New Purchases

I made three individual stock purchases in Q1-19. The market was still recovering from the December route. A few of my favorite stocks had their own problems which presented great buying opportunities.

Apple ($AAPL) – I’ve owned Apple since 2013. This is one of the greatest companies in the world. Their products speak for themselves and their management team is top notch. The stock nosedived from ~$230 to ~$145 for no logical reasons. There is a famous saying, “the market can stay irrational longer than you and I can stay insolvent.”

I rarely violate my basis in stocks, however, I could not pass up the opportunity to buy more Apple shares in the mid 140s. I quickly scooped up a few dozen shares near the stock’s 52 week low as the company was clearly undervalued. As I expect, the stock came roaring back. My only regret was not having more cash available to buy more shares.

Exxon Mobile ($XOM) – I also added a few shares to my position in Exxon during the beginning of the year. The company’s stock has an excellent dividend track record. Buying shares of a company with a rock solid balance sheet at a 5.0%+ yield was a no brainer.

Amazon ($AMZN) – As I mentioned in my last dividend report, I bought 1 share of Amazon. Well, I decided to buy 3 more shares when the stock price dropped again during the first quarter. This still remains the only stock I own that does not pay a dividend. However, I believe in the company’s long term prospects. Let the good times roll.

Life updates

June 16, 2019 by Guy on FIRE 11 Comments

Hey readers, friends, and fellow bloggers. Yes, I am still alive (and well-ish).

I owe all of you an explanation of where I’ve been and what I’ve been up to. I have not posted in almost 4 months and nor have I shared any explanation.

Well, sometimes life becomes hard. The past few months have been physically and mentally trying. At times I’ve been stressed, happy, tired, depressed, energetic, and burnt out. Also, sometimes life deals you a shitburger and you just have to eat it (more on that later).

This post may ramble but will provide some updates on my life, work, rental property portfolio, my dividend investing and what to expect going forward.

Life

Well, a lot has changed over the past few months of my life. First, I moved out of my tiny room. You know the room that was only 52 square feet. If you are not familiar with my prior living arrangement, you can have a good laugh by reading my guest post on Steve from Think Save Retire’s site.

This decision was for my mental health and to improve my quality of living (big thanks to Gwen at Fiery Millennials for pushing me in this direction). I had enough of extreme minimalism after 3 years and 4 months of living in a room many would consider uninhabitable. I moved into this room when I was 25. Now, as I approach 30, this arrangement is not as cool or enjoyable. Sure, I am not making as much by living in my house hack, but that’s ok. I am still getting paid to own my home which is way better than paying rent in one of the most expensive cities in the country. Besides, it’s not all about money anyway.

I’ve also had some fun this year in the form of hockey and travel. Things got weird in Austin, Texas for one of my best friends’ bachelor party. Wild time and great city.

I attended game one of the Caps/Canes series where the Capitals won. I also took a road trip to visit a college buddy for game three in Raleigh where Ovi knocked out Svechnikov; unfortunately, that was the only Caps victory of the night.

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In March, I travel hacked my way into a mostly free 10-day vacation in Portugal. The trip was fun and provided a great cultural experience. I spent time in Lisbon, Porto, and Sintra where I enjoyed awesome Portuguese food and watched the national team play Ukraine.

Naturally, we all have personal drama and family problems we must deal with. This has also been a time suck over the past few months. I won’t bore you with the details.

Oh, I’ve also been busy with work in ways that I haven’t experienced before.

Traveling for work

Last year, I shared that I accepted a new job offer. I’ve been at my ‘not so new’ job now for about 16 months. This year, my travel schedule has been insane and uncharacteristically frequent. I’ve been on a plane or train weekly for work (sometimes more).

Traveling for work sounds cool and fun but it quickly loses its sex appeal. Sure, collecting frequent flyer miles and hotel points is great. Oh and work pays for everything while I am on the road, so saving money is a nice perk. Not going to lie, I also DID enjoy my recent upgrade to a penthouse suite in Miami.

But being on the road also means not being at home. I spent three nights in my own bed in February. Traveling for work also means less time with family and friends. Frequently traveling for work leaves little time for running run errands and taking care of basic necessities like laundry. This has also presented a few challenges running my real estate side hustle which I will share more about later.

A longer work day and heavier workload were byproducts of all my recent travel. You see, when I am on the road, my day is often jam-packed with meetings. At the end of the day, there is usually a happy hour and/or dinner function with a client. Meanwhile, my email inbox fills up, my normal work responsibilities still need to be completed, and I fall behind. This leads to working more nights, early mornings, and weekends.

Unhealthy side effects of work

A longer commute accompanied my newish job. Most days I find myself spending between two and three hours in the car. This eats up a lot of my time. The longer commute means less time to work out, less time to focus on my business, less time to write, and less time with family and friends.

I also sit in my office on most days. My lifestyle has become more sedentary between sitting at work and commuting. This is something I absolutely hate and want to change. I biked to work once now that the weather is warmer. However, my commute is 20 miles each way (40 miles round trip) and something I cannot do regularly. Often, I need my car to attend meetings. Also, I’m not in triathlon shape anymore.

Work has also impacted my mental health and wellbeing this year. I am not particularly fond of the current work dynamics in my office. Some days have ended with me hating life because of my job. Some mornings have started with not wanting to get out of bed because of work. I crafted my resignation letter but am saving it for another day. I will not share too many details since this site might be known in the office now.

Technology Detox

I also intentionally stayed away from the blog, twitter, and technology for a while. I wanted to detox myself from extra information and distractions. Previously, I found myself living too much on the internet and not living in the real world enough. I am striving to be more present in life.

This detox was needed and great in many ways. Though, candidly, I didn’t have the capacity to post even if I wanted to. Between travel, work, and trying to have some social life, there simply weren’t any hours left in the day. As a human, I still need to eat and sleep and tend to normal life requirements like errands and laundry.

Real estate stuff & Landlord report updates

I have all the data to catch up on a backlog of landlord reports. If you are behind, you can catch up here. I did win the eviction saga and will share a full account of the eviction. Cool sneak peek- there were three guns drawn and the US Marshalls were in full tactical gear.

For the first time in my real estate career, I had an opportunity to ‘be the bank’. This was an investment opportunity I walked away from but look forward to sharing in greater detail with you. Long story short, someone I knew needed a partner on a deal.

Oh and that shit burger I mentioned earlier. Yeah, while my rental property portfolio is doing just fine, I have not been able to manage things as well as I would like. Hint, my job taking me away from makes it hard to manage properties well.

Dividend Reports

I am still tracking my dividend income as well. Q1-2019 Income was great and will come out later this week. I still love dividends and feel a jolt of excitement everything the dividend payments hit my account.

Existential crisis

For almost a year, I’ve been faced with an existential crisis. I am no longer driven by monetary gain. Making more money will not make me happier. I turn down opportunities because I value my time over money. My career provides no fulfillment, though, I never expected it to. I’ve viewed my career as a means to the end. However, it’s draining to do something five days a week when your heart is not into it.

This is a concept I will expand on in greater detail in a future post. I am 29 and will be 30 in less than a year. I want to make the most of my next 30 years, live a life of fulfillment and no regrets. More importantly, I want to live a life of meaning and impact.

Moving forward

Moving forward, I will continue to post. I will be more active in the community and twitter etc. I will try to stay current with the countless emails (keep them coming – I love hearing from all of you). At times, my posting may become irregular; I do have a life outside the blog. Until I quit my job, I will not have the bandwidth to run this site like a full-time business.

/end rant.

The Landlord Report – January of 2019

February 18, 2019 by Guy on FIRE 5 Comments

My rental property portfolio started the year off with a bang! January was a great month for cash flow. The time commitment was modest and the eviction Saga at rental property #4 was nearing its end.

The Landlord Report – January of 2019

Hello there – welcome to another “Landlord Report”. This monthly report shares my experiences as a landlord. The report will show EVERYTHING related to my rental properties and life as a landlord.

I will discuss the rents that I collected, mortgage payments, and other ‘landlord items’. I may include repairs, how I avoid vacancies, how I screen new tenants or any other items that pop up. This report will share how I made or lost. I will also share what kind of time commitment was required for being a landlord. I want to show the world being a landlord is a wonderful thing.

Throughout this process, I will be as transparent as possible. Being a landlord and owning rental property is a wonderful way to earn (mostly) passive income and allow you to buy back your time faster.

I hope you follow along with this monthly series. The Landlord Report can serve as a guide to owning rental property. Please feel free to contact me with any questions – happy to provide insight.

The table below outlines all my income and expenses for the past month:

As you can see, January was a profitable month. This month was more lucrative than last month (December 2018). In fact, this may have been my best month ever. Though, in my ripe old age of 28, my memory isn’t as great as it used to be.

I made over $4,200 after my expenses and mortgages were paid. My rental property portfolio produced income while struggling through an eviction where a tenant is not paying rent (more on this later).

The eviction saga is almost over. Rental property #1 and rental property #2 enjoyed a perfect month. Rental property #3 and Rental property #4 had a few minor items to report. Being a landlord is not all sunshine and cash flow. But! I still love being a landlord.

Below you will find a detailed account of what happened at each property this month. In addition to the information below, DC experienced snow a handful of times which require me to salt and shovel a couple times. Not fun but I sleep better at night without the potential liability.

Rental Property #1

The Starter Home

Things were absolutely boring and easy with rental property #1. There were no repair or maintenance items this month. The tenants paid their rent in full and on time. I collected the $2,325 on my way home from work. This costs me about 15 minutes of my time.

My former roommate and longest tenured tenant lives at rental property #1. He informed me he is relocating for a new job. My tenant will be leaving the DC area in March. I will need to find a replacement in the coming weeks. This may be a bit of a scramble, especially since its winter. It’s never good to a vacancy in winter but I am hoping to find someone quickly.

Given he is also a friend, I will be more accommodating than usually. Usually, I take a tough but fair approach to managing tenants.

Rental Property #1 Summary

In summary, rental property #1 – earned $356.76* earned and I spent about 45 minutes managing the property. My mortgage debt dropped by $720.76 from my monthly mortgage payments. When considering the principal reduction, I came out ahead by $1,077.52.

*Remember – this is an accidental rental that I plan to live in during FIRE.

Rental Property #2

The Fixer-Upper Rental property #2 had a perfect month. The tenants paid their rent of $4,050 in full and on time. Rent collection required me walking downstairs to get my morning cup of coffee. Does life get any easier than that?

Also, three of my four roommates/tenants renewed their leases.

Two of the tenants renewed for another 12-months.

One of the tenant’s rent is staying the same. I took a stab at increasing his rent but he balked. He isn’t willing or able to pay more and I don’t want to find a replacement for him. You may call this laziness but sometimes small rent increases are not worth the hassle of finding a new tenant.

The other guy staying for another year rent increased by $50/month.

The third tenant’s rent will increase by $100/month. The lease is converting to month-to-month which is her right under DC Landlord/Tenant laws. Her plans include buying a place in the near future and doesn’t want to be stuck with a 12-month lease. I’m happy she is pursuing homeownership and am encouraging her to use an FHA Loan.

The month-to-month lease is not my preference. I even offered more appealing economics for a year commitment but she prefers the flexibility. I will enjoy the $100/month increase and she still is required to provide 60 days notice before moving out.

I’ve achieved $150/month rent increases. This means rental property #2 will earn an additional $1,800/year.

My fourth roommate will be moving out. There will be an opportunity to rent his room for an additional ~$50 increase as well. If I get the rent increase on the fourth room, that will be $2,400/year increase in rental income for rental property #2

Rental Property #2 Summary

In summary, rental property #2 – earned $1,414.89**. I spent about 4 hours managing rental property #2 this month. My mortgage debt decreased by $755.57. When factoring paying down my debt, rental property #2 made me $2,170.46. Not bad for about a couple of hours of work. Oh, and I got a free place to live.

**I also live in the house and get paid to live here. Pretty sweet right? House Hacking is awesome.

Rental Property #3

My Duplex

From a maintenance standpoint, things were great at rental property #3. Other than snow removal, there were no matters that required my time.

From a general management statement, things were busier. I received notice the tenant in unit #1 subsidy will expire at the end of April. As such, I sent her a letter informing her of her options. She will be required to let me know by the end of February if she intends to stay or leave.

Unfortunately, I also received notice the tenant in unit #2 is also losing her subsidy. This notice came with a shorter timeframe; she will be moving out at the end of February. I will almost certainly incur a vacancy in March.

This misfortune will allow me to finish the utility conversion. The utility conversion will probably cost me $2,700-$3,000. A lofty price tag but worth it. You see, I will probably save this much annually by no longer being responsible for the gas bill. Stay tuned. Rental Property #3 may have a bumpy month or two.

Utilities for the property:

Gas Bill: $234.92

Water Bill: $257.41

Electric for unit 2: $77.41

In summary, rental property #3 – made $1,246.81 and I spent about 2 hours of my time managing this property. Rental Property #3’s mortgage debt also decreased by $424.72. When factoring in paying down my debt I made $1,670.90.

Rental Property #4

Well, the eviction saga continued in January. I received a call from the US Marshal service in the middle of the month. The eviction is scheduled for early February. Look forward to wrapping this process up.

Otherwise, there was no activity at the property. Utilities were:

Water Bill: $154.13

Common area electricity: $32.25

In summary, rental property #4 – made $1,254.27 and I spent about 2 hours of my time managing this property. The property will be more profitable once it’s fully leased. Rental Property #4’s mortgage debt also decreased$446.23. When factoring in paying down my debt I made $1,700.50.

Portfolio Summary

In summary, I spent about 8 hours and 45 minutes of my time maintaining my rental property portfolio. In January, my rental properties made $4,272.10. I made $488.24/hour being a landlord.

Being a landlord is provides one of the best dollars per hour sources of income. My mortgage debt also decreased by $2,347.28 in January. Gotta love having tenants pay off over $2k of my debt every month. Factoring in repayment of debt and cash flow, my rental properties made$6,619.38. So, I made $756.50/hour. Being a landlord and owning a rental property portfolio is a great way to build wealth. What is your excuse for not owning rental property?

3 Simple Steps to Finding Real Estate Deals

February 11, 2019 by Guy on FIRE 3 Comments

Welcome back to part three of the series. The first part of the series covered real estate cycles and my personal experience with them. Last week, we deliberated over real estate strategies and goals.

Now that we have established the real estate basics and how to pick a strategy – let’s jump into finding real estate deals. If you are behind, please check out the previous posts below to learn about real estate investing.

Part I, Understanding Real Estate Cycles, covered:

Understanding real estate cycles
How long real estate cycles last
Phases of real estate cycles
My experience with real estate cycles

Part II, Selecting a Real Estate Strategy, covered:

Real Estate Strategies
Setting your real estate goals
Aligning your real e estate strategy with your goals
Specializing in real estate investing

Part III, Finding deals, covers Finding deals:

My approach to finding real estate deals
Creating your criteria
Create deal funnels
Analyze Daily

How to Find Real Estate Deals

I want to share with you my approach to finding great real estate deals. As we previously discussed, there are always deals regardless of where we are in the real estate cycle. I take three simple steps when I am looking for a new property. My systematic approach has allowed me to find the best real estate deals. I know this method will provide great guidance for many of you reading this.

How I find deals

When I am in ‘deal mode’ or looking for a new deal – I’m like a machine and approach finding real estate deals like clockwork. My repetitive approach has served me well and may work for others. This post will teach you how to source real estate deals.

My three step process to finding real estate deals:

Create search criteria
Create deal funnels
Analyze daily

1. Create Search Criteria

Creating search criteria is the first step. That’s right, creating search criteria is my first move when I want to find a new deal.

The search criteria should fit an investor’s real estate strategy, be realistic, and specific. Having specific search criteria helps me sift through listings and provides clear guidance of what I want. Likewise, this will help you screen deals.

Creating your search criteria is paramount; you cannot find what you are looking for if you do not know what you seek. I highly recommend you do not skip this step. Make sure your search criteria matches your real estate strategy. And make sure your search criteria is reasonable. Don’t chase unicorns.

Are you looking for a long-term, buy and hold, rental property that will provide consistent cash flow?

Are you looking for a property that you can fix-n-flip?

Or maybe you are looking for a property that you can wholesale to another investor?

Do you want a turnkey property that requires little or no work?

All of these are great strategies that can yield great results for investors. However, each of these strategies requires a certain type of property.

The perfect property for the flix-n-flip investor would not be appealing for a turnkey investor. Likewise, a turnkey property may not be attractive for a wholesaler. Some properties may work for multiple strategies. Most properties will only work for one or a few strategies. No property will work for all real estate strategies.

Don’t waste your time with bad deals or properties that don’t fit your needs. This is why you must have a real estate strategy, know what you are looking for, and have specific search criteria.

Take a moment and figure out your search criteria.

Asl yourself what are you looking for in real estate? Your search criteria and real estate strategy should be aligned.

For example, If you are looking to flip a property make sure you are buying the property well below after repair value (ARV). A good rule of thumb is 70% of ARV.

Likewise, I am a long-term investor. I like to buy and hold my properties for cash flow. More specifically, I like single family homes or 2-4 unit buildings. I prefer properties that require some renovations so that I can create additional value. More importantly, I care about cash flow. The property’s rental income will need to cover all repairs, maintenance, taxes, insurance, and the monthly mortgage. Additionally, there needs to be money left over for me to put into my pocket every month.

Based on my previous statement, I am probably not interested in single family homes located in the best neighborhoods. At least, not in DC. Homes in the more expensive neighborhoods sell for well over $1 million. The rent for the same home would be well below the one percent rule and not even cover the mortgage.

It doesn’t matter what real estate strategy you use. Just make sure your search criteria fits your goals and strategy

2. Create Deal Funnels

Step two – create deal funnels. I create as many deal funnels as possible. Creating deal funnels is essential to being efficient. These funnels bring me deals which saves me time. . Three of the deal funnels I use are the MLS, Redfin, and my real estate network.

Multiple Listing Service (MLS)

First, I relay my search criteria to my real estate agent. My agent then creates a daily (or instantaneous) report on the Multiple Listing Service (MLS) based on the information provided. The MLS is where most every property is listed for sale.

Your real estate agent should have access to the MLS. Inform your real estate agent what you are looking for. A good real estate agent will be able to generate an automated report for you. Be sure to find a real estate agent that’s an experienced real estate investor. Even better, find one that has experience with your real estate strategy

Redfin

Second, I love the Redfin app. Like my approach to the MLS, I set up my own searches through the free app/website. The interface is easy to navigate and Redfin allows you to create multiple ‘saved searches’ based on different search criteria.

Based on my search criteria, I get instant notifications sent to my phone any time a new deal is listed that fits my criteria. This is very important. In a hot market, real estate deals move quickly and timing is essential. Jumping on a deal is a must – especially in a hot market. If you wait a couple of days, someone may snatch up the property.

Real Estate Network

Third, I reach out to my real estate network. I let my real estate connections know I am on the prowl for another deal. This list may include brokers, property managers, real estate agents, contractors, and lenders. Attorneys and CPAs can also provide a good source for deals; both of these specialists see plenty of off-market deals. The more people that know what you are looking for the better.

Build a real estate network if you do not already have one. I recommend going to local real estate meetups. Find other investors in your area and schedule as many coffees or lunches as possible.

3. Analyze Daily

While on the warpath searching for a new property, you must look analyze deals daily. This is how to find incredible real estate deals. Every morning, while I sip coffee, I spend at least 30 minutes to an hour looking at new listings. If you snooze, you lose. Good real estate deals move quickly, especially in a hot market.

Analyzing real estate deals should become a habit. Likewise, you need to make analyzing deals second nature. You need to develop the ability to confidently and efficiently analyze a deal. Over time, your skills will improve and you will develop a knack for spotting good real estate deals.

Some important factors to remember when analyzing deals:

Vacancy – don’t forget to factor in future vacancies
Reserves – real estate is a physical asset that requires upkeep. Make sure factor in a reserve budget for future repairs. Over a 30 year period, everything will need to be replaced.
Repairs – things break. There are no two ways about it. Don’t forget to account for future repairs.
Real Estate Taxes – you must pay them. Check the local government website for property tax rates.
Insurance – don’t be foolish, pay for insurance.
Rent assumptions – what are you basing your rental assumptions on? Check rental websites, craigslist, and with other investors for rent comps. Make sure you rents are not below the market rate. Likewise, you don’t want to get blindsided and realize your assumptions are well above the current market rental rate.
Renovation Budget – get multiple bids from contractors. Make sure your renovation budget is reasonable.
Contingency – Building in a buffer or contingency into your renovation budget. I would recommend 5-10% of the total budget. So if you have a $50k renovation. You should have up to $5k for cost overruns.

I hope these three simple steps will sever you well. These exact steps enabled me to buy 4 properties in 4 years. I was able to go from being in debt to a net worth over $650k in 5 years. My success was largely driven by real estate and I know you can have similar success. Now go out there and find great real estate deals.