Additionally, there is a degree of protection that is built into the numbers. Every month 8% of the gross rents is set aside and left in the bank to cover the inevitable vacancies that occur. Those monies can be drawn upon during vacancy periods to supplement our monthly cash draws when I reach the point where I will be relying on the cash flow to fund full retirement (I am currently semi-retired).
This pace is frantic and leaves little room for error in our monthly budget. We have some traveling coming up this Summer (Alaska) that we will need anticipate. We do have airline miles stored away and some vouchers that we're holding in reserve from having volunteered to be "bumped" on some flights. Additionally, I do have a "secret weapon" which I'll probably talk about during the next monthly update. Unfortunately, it's use comes at a cost. The most important tool in the arsenal is controlled spending. Like a tape measure in a carpenter's tool belt, it's the primary tool most financial bloggers are skilled in using on a regular basis. I am still needing to master mine.
So far, so good. Feel free to comment and let me know what you think. What are you doing? Share your story.