LIVING OFF DIVIDENDS & PASSIVE INCOME

Ouch! Just tallied last months expenses. Apart from the rent,food, $600 for new tires/brakdes and $900 insurance premium, I had quite a lot of expenses.

$6k landscaping
$16k unexpected request for a downpayment on a house [1031 shortfall that the loan officer should've caught, but she was in the hospital for 3 weeks]
$9.8K 10% downpayment on a house in indiana
$4.4k 5% downpayment on another house in indiana
$4k in plane tickets
$2k lawyer fees for misc stuff.

Out of these, i was expecting only $20k in expenses so i’m over by $24k, which leaves me without sufficient reserves in case I have a few properties vacant for more than a few months. Time to get a HELOC out on my investment properties and pull some cash out!

You always want to do this before you need money. When you do need, the bank won’t lend it to you.

• Notice from Mortgage Company One of my lenders sent me a notice yesterday. Apparently on the loan docs that funded 1 year and 5 weeks ago, I had forgotten to sign the document that alerted me to the fact that my loan had a soft prepay penalty. This is the 2nd time this company......
• Closed Part Of My WCI Postion Since WCI was up sharply, I closed out the January $20 Puts. There's only 2 months left and like someone famously said, "Markets can remain irrational longer than you can remain solvent". Better to take a small loss now than a bigger loss later on.I still think the underlying fundamentals......
• Housing Still Sucks! According to Chris Gaffney of Everbank.com, who's Japanese REIT CD I recommend, said todayThe markets seem to be waking up to the fact that the housing market is no where near the bottom. Borrowers are being squeezed by the treasury markets recent sell off which has increased 30-year mortgage rates......

• Is Going Into Debt Ever Worth It? Debt has become such a dirty word these days, and in many cases, there is good reason for that. Americans are saddled with unheard of amounts of debt and the problem is not just going to go away. In some cases, debt is absolutely necessary, while in others, it is......
• Individual Tax Extension Deadline is October 15th If you were one of the individuals who filed an IRS extension Form 4868 this past April, your deadline is fast approaching! The Form 4868 is a 6 month extension from the typical deadline of April. October 15th also happens to be the last day you can claim your economic......
• Alternative Income Streams Progress - August 2007 With the beginning of the month comes my alternative income update. This month, the magic word is "perspective." Last night, my wife's car got broken into. Our Magellan GPS was stolen - a loss of about $400. There was $300 worth of damage. Her "emergency" $20 bill was stolen as......

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