How I made $3000 In Passive Income Last Month - Cash Flow Diaries (2024)

I have been on a mission to become financially independent for a few years now and I am super excited to see theprogress I am making. I have made big life altering decisions to achieve this and it’s paying off as you will see below.

I finally am settled in enough to see what kind of impact has been made since choosing to uproot my life with my big move. I chose to move from Austin, TX to Indianapolis, IN 9 months ago for the sole purpose of being able to reach my financial goals faster. How you might ask? Well actually its really simple, Indy’s cost of living is far cheaper than Austin and the real estate prices are super affordable. My plan is purchaseas many rental properties as I can while I live in Indianapolisso that I can eventually earn enough passive income to be able to quit my dreadful day job!

Over a year ago while living in Austin I wrote my first real estate property passive income report in which I was making about $2000 straight cash flow from my rental properties. This consists ofthe actual cash received after deducting actual expenses paid for the given month. Over a year later and now living in the Midwest, I have increased my monthly cash flow by over $1,400 per month. That will equate to about an extra $17k in my pocket this year for making this life alteringmove. With an extra $17k, I can use that as down payment and get another rental property. Which will allow me to reach my goals even faster. Pretty cool huh?

I made$3000 in passive income last month! Life cant really get much better then this! Okay well maybe if I doubled my passive income then it would be better. 😉

The power of real estate investing really is a beautiful thing. The purpose of this income report is to show you that generating passive income can be achieved by anyone. If you are savvy enough to invest in the right kind of investments, make good decisions and do the right things, you too can generate passive income. Just look at me, I am just a regular Joe Blow and I am doing it. There is nothing special about me. I don’t even have a bachelor’s degree, I grew up in a poor family and I barely even graduated high school to be honest.

Below you will see how I made $3000 in passive income last month. I have broken down every single investment property I have and reveal how much actual passive income is being made by them. I even break it down with calculated future expenses like repairs and vacancies. When running numbers on investment properties, you should try to include estimated costs for future vacancies and repairs so that you can get a more realistic number on how the returns will look in the long run. The graphs below includes theseestimates.

Income:
Rent Received: $1300

Expenses:
Mortgage Payment: $887.97
Property Mgmt Fee: $0 (This is the only rental property I have that I self manage)
Repairs Made: $0
Estimated Future Repairs (10%): $130.00
Estimated Future Vacancy (5%): $65

Total Actual Passive IncomeReceived= $412.03
Estimated Monthly Cash Flow(Minus future repairs and vacancy) = $213.03

To see more details and info on rental property #1click here.

Income:
Rent Received: $895

Expenses:
Mortgage Payment: $358.09
Property Mgmt Fee: $89.50
Repairs Made: $0
Estimated Future Repairs (10%): $89.50
Estimated Future Vacancy (8%): $71.60

Total Actual Passive IncomeReceived= $447.41
Estimated Monthly Cash Flow(Minus future repairs and vacancy) = $286.31

-To see more info on this property click here.

Income:
Rent Received: $935

Expenses:
Mortgage Payment: $358.09
Property Mgmt Fee: $93.50
Repairs Made: $0
Estimated Future Repairs (10%): $93.50
Estimated Future Vacancy (8%): $74.80

Total Actual Passive IncomeReceived= $483.41
Estimated Monthly Cash Flow(Minus future repairs and vacancy) = $315.11

-To see more info on this property click here.

Income:
Rent Received: $795

Expenses:
Mortgage Payment: $0 (Paid cash for this one)
Insurance: $52
Taxes: $137
Property Mgmt Fee: $79.50
Repairs Made: $0
Estimated Future Repairs (10%): $79.50
Estimated Future Vacancy (8%): $63.60

Total Actual Passive IncomeReceived= $526.50
Estimated Monthly Cash Flow(Minus future repairs and vacancy) = $383.40

-To see more info on this property click here.

Income:
Rent Received: $950

Expenses:
Mortgage Payment: $0 (Paid cash for this one)
Insurance: $52
Taxes: $147
Property Mgmt Fee: $95
Repairs Made: $0
Estimated Future Repairs (10%): $95
Estimated Future Vacancy (8%): $76

Total Actual Passive IncomeReceived= $656
Estimated Monthly Cash Flow(Minus future repairs and vacancy) = $485

Income:
Rent Received: $750

Expenses:
Mortgage Payment: $288.09
Property Mgmt Fee: $75
Repairs Made: $0
Estimated Future Repairs (10%): $75
Estimated Future Vacancy (8%): $60

Total Actual Passive IncomeReceived= $386.91
Estimated Monthly Cash Flow(Minus future repairs and vacancy) = $251.91

-To see more info on this property click here.

Income:
Payment Received: $1150

Expenses:
Mortgage Payment: $1045.01
Note Servicer: $16

Total Actual Passive Income = $88.99

Total Actual Passive Income for March 2017: $3001.25

Total Estimated Cash FlowIncome for March 2017: $2418.80

Fortunatelynone of my investment properties had any repairs this prior month so these numbers are as good as they are going to get for now. It is not uncommon at all for these rentals to go months and months without repairs. I think I have only had a total of 2 repair calls this year alone on all my properties. Which is great and part of it is because my property manager screens the tenants really well. I love my property manager!

As you can see, I am well on my way to reaching financial freedom. The only problem is that I feel like I need to at least triple this income to really be content and not alter my life in any way.

Tripling this passive income stream isvery achievable and I think I can reach that goal in just a few short years. I am already on the hunt for a new rental property right now as I write this and if I can somehow manage to but two this year, I will be in a great financial position to achieve my goals.

On top of that, since I moved to Indy, I lowered my primary mortgage from $1102 per month down to $440 per month. That is a $661 monthly savings I am seeing every month. All in all, with the added passive income and mortgage savings, I am seeing an extra $1400 in my pocket every month from making this move. I can’t even begin to express how happy I am with moving to Indy and my wife and I are truly enjoying living here.

Total Increased PassiveIncome Per Month Since Moving to Indianapolis: $1462

As you can see, if you are able to make a big life changing move like this, it’s very possible to drastically change your finances for the better. After all, passive income is the key to happiness!