Friday, March 9

How I will increase Passive Recurring Income by $2,300

This week I have established plans that will help me worry less about finances and enjoy life more.  By 2020 I want to increase passive recurring income by $2,300.  Here's how I will do this:

Real Estate

We're going to buy a new house.  I've started looking at new-home communities in the Tampa Bay area.  This will be our new house, not a rental.  Why?  I want to turn our current house into an AirBnB.  I'm intrigued by the potential income of short-term rentals and think it could be a good bit higher than renting out my house in a 12-month lease.  I also like the idea of being able to constantly maintain the house.  We've had some big surprises when tenants move out.  The house we worked on last month required close to $20,000 in repairs to make it rent-ready.  If my house is turning over on a weekly basis, I can keep it clean, fresh and maintained regularly.

Afterwards, I will decide what our next move should be.  If the AirBnB is a success, the next property I buy will be specifically for short-term rentals.  If it doesn't pan out, I would look at other options.

Investments

This is the truly-passive breed of investing.  The AirBnB will require a little effort, although most of that effort, such as keeping the place clean, could be hired out.  Investing in dividend-paying stocks requires almost no ongoing effort at all.  The plan is to regularly invest excess cash flow over the next two years into income-producing companies.


I'm really excited about the thought of moving into a new home.  It's always fun to look at houses and then start fresh.  I'll keep updating you guys on our home search.

2 comments:

  1. These are some pretty big changes. I hope they work. I think the Airbnb should do well. I was planning on renting out a room in my house on Airbnb if I'd been able to buy it. And also renting out the whole house when traveling. I might get back to that plan some day. I've got a pretty big change coming up myself. Hopefully I'll get around to writing a blog post about it tomorrow.

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    1. I've talked to others who rent through AirBnB and everyone says it's a good income. It should help that I live in an area tourists visit. I read your blog - sounds exciting that you're going to be doing some traveling. Looking forward to hearing more.

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