Hello everyone,
I was very surprised by the temperature difference in Kansas City. Over here, the average temperature in winter is around -5 degree. But there had been a few days that dropped to like -16 degree and the next day became 12 degrees Celsius. What a big change compared to Vancouver.
For this month, I am trying something new. I want to share with everyone what I am doing, what I know, and what I am interested. So I separated in to several little chapters that tells you my current progress in real estate, share with you my real estate knowledge, and my personal interest.
For the month of January, we have moved from the studio we rent to the house we own and moved again from the first house to the second house. It’s a very wonderful and satisfying feeling when the first time you step into the house you buy and actually live in it. It also feels much better that I am paying myself the rent than paying for other people’s mortgage and can’t even own the property. We didn’t realize how much time it can take to organize the rehab for two houses, and moving at the same time. My goal is to acquire one property every month. I still have 5 days to do it. ^^
Real Estate Knowledge Corner—Financial Freedom
My friend has asked me this question: what is financial freedom? My definition of financial freedom is: you have enough passive income every month to support your desired lifestyle.The next question would then be: what’s passive income? A passive income is the opposite of earned income like salary. Everyone has income from the job they have. Either you are paid by the time or by the work you did, you need to do something to earn that income. But what happens if you stop working? You don’t get any check from your boss. A passive income is money that comes in every month without you working for it. So it doesn’t matter if you are on vacation or you are sick or you are sleeping, the money still comes every month. A few examples of passive income are: vending machine, coin laundry, storage, real estate, loyalty, dividend from stock. These types of income only require you to spend the time to set it up for the first time. Once you set it up, you only need to spend maybe 10 minutes or less a week to maintain it. And for the rest of your life, unless you sell it to someone else, or something unforeseen has happened, the money will come to you whether you like it or not.Think about it, if you have enough money coming in every month to pay for all the expenses you have, what would you rather be doing right now? Who would you rather be with? Where would you rather be? That’s where the biggest difference is: When you are financially free, it FREES you to do whatever that you WANT to do, instead of what you NEED to do or HAVE to do. Even if you love your job, you can still do it, you will then become going to work everyday because you want to, not because you have to.
Our First “Cash Cow” in Kansas City
We bought this single family house back in December. It has already been fixed up really nicely and it’s going to be rent out in February. The listing price for this 2 bed 1 bath property was $49000 when it was just listed. But the bank dropped the price to $32000 after being on the market for 3 months. We made an offer for $15000, and got it for $18000. The cost to fix it up is $10000 (including painting the whole house, new roof, new plumbing, and buying used appliances). We have just rent it out for $650/ month. So all in cost (buying it, fixing it, closing cost, insurance, tax, utilities) ~ $31000. Even if I borrow all the money from the bank at 6.25% interest to do the whole deal, I still net about $280 of cash flow each month. Because this house actually worth $65000 at market price, I have made $34000 in equity. That’s more than what I made at Best Buy in a year!! For a deal that costs $31k and generates $280 a month for the rest of my life and $34000 instant equity, I’d say it’s a pretty good deal for me!! I try to make it as simple to understand as possible, but if you are interested in knowing more, feel free to contact me.
Martial Art – my interest (Jenny found it boring until she started using it to hit me)
All of my close friends know that I have a huge interest in martial art. Don’t know why, but I just like to fight. Noooooo, just kidding. I am a peaceful person who just happens to be fascinated by the art of Kung-Fu. As all of you knows, there are many styles of martial art. The one that I am particularly interested in and practice is a style called: Wing Chun. This style was said that it was developed by a female shao-lin monk back like 300 years ago. So the moves and theories behind it are all concentrating on ways to overcome a larger force with little or no force. Because women don’t have as much muscle as men do, you need to rely on other ways to generate a great amount of force without using plain muscle. That’s why I like it so much because it focuses on how to make each and every move as efficient as possible. Here is a video clip of my sigong (the teacher of my teacher) demonstrating how much power human body actually have. http://www.youtube.com/watch?v=0cJkJeKpGt8
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