FI3000

Well it’s been almost 6 months since I purchased my first rental unit. The first 3 months were spent fixing and improving the property. It took me countless hours and $9600 worth of material but the unit turned out beautiful and shouldn’t need any work for a while as it just got a new roof, kitchen, bathroom, deck and floors.   Since the tenants moved in I’ve spent a total of 45 minutes at the unit. 15 of those minutes were to replace an outside receptacle with a newer safer GFI ($20), the other 30 minutes I spent chatting with the young couple that rent the house from me.  So in the last 3 months I’ve worked for 15 minutes and collected $2400 in rent. That works out to about $9600 an hour…not a bad wage if you ask me. Of course something catastrophic could happen ie-furnace needs replacing, major sewage backup etc… But so far so good. Only 6 more days until I can cash the next rent cheque. sweet.

The goal is a retirement portfolio net worth of $1,000,000 and an annual passive income of $40,000. We are currently mortgage free but won’t be including the value of our principal residence or cottage as we have no plans to sell either. We have also omitted the value of our workplace defined benefit pension plans and RESPs ASSETS: Sept Contributions: $0 Retirement Portfolio: $472,430 (up $15,788 - stock market gains) Rental Property: $105,000 (lowest estimated selling price) Total Retirement Assets: $577,430 (up $15,788) LIABILITIES: Investment Loan: $34,134 (down $1,391) Rental Property Loan: $77,618 (down $500) Total Liabilities: $111,752 (down $1,891) Retirement Portfolio Net Worth: $465,678 (up $17,679) Dividends Received (year to date): $10,276 (up $1464) Well this month was a good month primarily because of the overall rise in the markets.  However, I anticipate that October, November and December will be the best months of 2017 for us. This is due to a num...

The goal is a retirement portfolio net worth of $1,000,000 and an annual passive income of $40,000. We are currently mortgage free but won’t be including the value of our principal residence or cottage as we have no plans to sell either. We have also omitted the value of our workplace defined benefit pension plans and RESPs. ASSETS: Aug Contributions: $0 Retirement Portfolio: $456,642 (down $3,845 - stock market and currency losses) Rental Property: $105,000 (up $25,000 estimate of post renovation selling price) Total Retirement Assets: $561,642 (up $21,155) LIABILITIES: Investment Loan: $35,525 (down $1,288) Rental Property Loan: $78,118 (down $508) Total Liabilities: $113,643 (down $1,796) Retirement Portfolio Net Worth: $447,999 (up $22,951) Dividends Received (year to date): $8,812 (up $618) We didn’t make any new contributions this month and our investment portfolio was down around 0.8%. A large portion of this decline was due to exchange rates. I’ve finally fi...

The goal is a retirement portfolio net worth of $1,000,000 and an annual passive income of $40,000. We are currently mortgage free but won’t be including the value of our principal residence or cottage as we have no plans to sell either. We have also omitted the value of our workplace defined benefit pension plans and RESPs. ASSETS : July Contributions: $0 Retirement Portfolio: $460,487 (down $5,433 - stock market and currency losses) Rental Property: $80,000 (purchase price) Total Retirement Assets: $540,487 (down $5,433) LIABILITIES : Investment Loan: $36,813 (down $1,984) Rental Property Loan: $78,626 (down $652) Total Liabilities: $115,439 (down $2,636) Retirement Portfolio Net Worth: $425,048 (down $2797) Dividends Received (year to date): $8,194 (up $1,481) We didn’t make any new contributions this month and our investment portfolio was down another 1%. A large portion of this 1% decline was due to exchange rates. The only change to the portfolio in July was th...

Well I haven't been a very active buyer this year but I did just recently pull the trigger on CVS Health Corporation. I don't think this is going to be a home run but will fit in nicely as one of my core holdings that I intend to hold indefinitely.  I'm projecting an annual return in the 7 to 10% range. Here's some of the relevant financial metrics as well as some of my rational for buying. -Dividend Yield: 2.6% -Payout Ratio: 36.5% -Current Ratio: 1.1x -PE: 16 -2017 Forard PE: 13 -Annual Dividend Growth Rate over the last 10 years: 27.1% -Demographic tailwind, we're getting older as a country. -Has been negative affected by the political uncertainty regarding health care in the US. Like all things I believe this uncertainty will pass and when it does the stock will rise. ABOUT CVS "CVS Health Corporation, together with its subsidiaries, is an integrated pharmacy healthcare company. The Company provides pharmacy care for the senior community throu...

The goal is a retirement portfolio net worth of $1,000,000 and an annual passive income of $40,000. We are currently mortgage free but won’t be including the value of our principal residence or cottage as we have no plans to sell either. We have also omitted the value of our workplace defined benefit pension plans and RESPs. ASSETS : June Contributions: $0 Retirement Portfolio: $465,920 (down $2,264 - stock market losses) Rental Property: $80,000 (purchase price) Total Retirement Assets: $545,920 (down $2,264) LIABILITIES : Investment Loan: $38,797 (down $677) Rental Property Loan: $79,278 (down $496) Total Liabilities: $118,075 (down $1173) Retirement Portfolio Net Worth: $427,845 (down $991) Dividends Received (year to date): $6,713 (up $1,682) We didn’t make any new contributions this month and our investment portfolio was down another 0.5%. Normally, I would be pouring more money into the markets but this year I’ve been keeping a lot of it in our savings accou...

As you know I’ve recently bought a single family rental unit that required a TON of work. Well I’m currently in the process of jazzing it up and everything is going according to both the plan and budget. I thought it might be valuable to share what I’ve learned so far about the income property buying process. Basically, other than the buyer and seller there are 4 parties involved in the transaction. The real estate agents, banks, lawyers and insurance. The first 3 were a breeze and I’d go as far as say they were a pleasure to deal with. However, INSURANCE and insurance brokers/underwriters/sales people have to be the biggest pain in the ass.  I found the whole insurance procurement process excruciating painful. I’m generally a reasonable guy but multiple times when dealing with insurance industry “professionals” I’ve had to put the phone down, take a few deep breaths and call on my inner zen to prevent the top of my head from exploding off it’s foundation. Long story short I ev...