This is my official August  2018 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 09/03/2018. Detailed explanations and a quick summary can be found below. If you would like to see my previous months net worth posts, please visit my Net Worth Tracker.  I have been tracking my net worth monthly since May 2015.  If you want to learn how to track net worth then check out how I am doing it.

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TOTAL NET WORTH: $824,092

Quick Summary and comments: +$56,226

 

Another huge upswing in my net worth this past month.  Its kind of unbelievable to me but its accurate.  Apparently, my estimation of what some of the values on my properties are worth have been pretty far off.   In the last two months, I have been able to successfully pull lines of credits on three of my properties.   This resulted in getting actual appraisals on these properties which is what I am using now to evaluate these specific properties.  It’s because of this that I am seeing such a huge jump in my net worth.   My properties except in one case are being appraised for far more than what I initially thought they were worth.   It’s a great thing and only goes to show how conservative I am when running numbers.  A good problem to have!

Personal Life Update:  We traveled to Washington state a few weeks ago for a wedding and it was my little girl’s first plane ride.  Everything went well surprisingly.  The baby did great and we had no issues.  My sweet, little baby is almost 4 months old and she has now rolled over for the first time, is nothing but smiles and has grown so much (in my opinion).  It really is amazing watching a little human grow and progress during these early months.  Such a beautiful thing.  My love for this little baby is indescribable.

Real Estate Investing Update:   Still going strong!  My flip is still being rehabbed and I am estimating still another 5 weeks or so until completion.  The outside/external is complete at least but we have a long way to go on the inside.  It’s starting to take a little longer than originally anticipated but I am not surprised at all.

I was also able to get another Line of credit secured on two of my paid off rental properties.  This has given me access to another $112k that I have at my disposal now.  My plan is to use this newly acquired capital to fund another flip as long as I can find another distressed property that is.  I have been looking and it’s really hard finding good deals right now.  Most are just not worth it to me because the profit is minimal.  I’m looking for a home run deal and crossing my fingers I can find one.  If I can’t find one to flip, then I will figure out how to properly use this LOC money to buy myself another rental property.

Okay enough about that, lets jump into my net worth categories.

Assets: Explanations of each of my assets.

Cash:   +$1,813

Small increase in cash surprisingly.  Feels like I have spent so much money but in looking at my spreadsheet, I can see all the money spent was on my credit card.

I am expecting my cash position to decline as I continue working on my flip.   I am planning on using up all my cash for the flip and then dip into the HELOC (lines of credit) for the remainder.  I will leave a good $20 to $30k though in the Lines of credit for any emergencies that may arise.   Once I sell my flip, I will pay off the Lines of credit and replenish all my cash!!  And then hopefully see about starting that cycle all over again.

My cash as noted above in the spreadsheet consists of my wife and I’s checking account and my REI (Real Estate Investing) checking account.

HSA account: +$577

I think at this point I am maxed out on my HSA deduction for medical bills so I should start seeing small growth again each month here.  Yay!

My HSA contributions are automatically deducted each paycheck from my dreaded W2 day job.

Company Stock Options: +$1,380

Nice to see another little bump in these.  I’m still amazed how much this stock has grown for me.  I practically got these stocks for free from my company.

These are stock options from my day job. I am fully vested.    

Stock Portfolio: –$1,658

Precious metals have been getting hammered lately.  My stock portfolio is built of precious metal mining stocks.  These are highly volatile and I am keeping these until the economy crashes and gold sky rockets.  I’m in it for the long haul on these as I think it’s just a matter of time before the precious metal sector takes off.    Overall I am still profiting from these stocks as I bought them for dirt cheap a long time ago when the precious metal sector was at its peak low.

I bought all my shares using tradeKing  which is now Ally.

401K: +$101

I made an executive decision awhile back to take money out of my 401k and no longer contribute any more money to it. Mainly because I do not get matched contributions from the dreadful day job. But also because I KNOW I can make better returns using that money on rental properties.    Any movement you see in this asset is only from market fluctuations.   I am not able to withdraw the remaining amount in here until I quit my job.   I really don’t like the idea of having an account that punishes me to take money out because of age.

Property # 1 (Indianapolis, IN)

All is good with my primary residence at this time.  I officially got a HELOC in July on this property and discovered it was worth $70k more than I initially had it valued on my net worth sheet.  Good stuff!!    This current primary home will go back to being a rental property later this year when I move into property #9 which is being rehabbed right now.  Looking forward to the extra cash flow!

My current primary residence in Indianapolis.  This was originally a turnkey property I bought back when I lived in Austin.     I bought this house for $67k back in June 2015 and cash flowed off it until I decided to move to Indy and move into it.   I spent an additional $30k in renovations when  I moved into this house to make it an awesome primary residence.  So I am all in for $100k.    Here are the details on when I originally bought this one as a turnkey rental property.

Property # 2 (Austin, TX)

Rent paid on time, no repairs made again.  I am expecting to replace the roof soon which will be a huge expense.  I guess I am just waiting for the very first sign of leakage but I shouldn’t do that.  I need to just pay the money and replace the roof ASAP before any damage incurs.    This is the property I self manage in Austin.   Even now that I live in Indy, I will continue self managing this one.  I think I can do it from afar and if in the future I realize that I can not continue being my own property manager, then I will probably just find a PM to handle it.

This was my first rental property.  It’s actually the first house I ever purchased in general.  I bought it when I moved to Austin way back in the day and it was my primary residence for a long time.  I originally never had plans for it to become a rental property but when I discovered the beautiful world of real estate investing, I knew I would someday convert this one to a rental.   I expect gradual appreciation from this property because it is in the suburbs Austin which has been growing tremendously.  Love me some HOT markets!

Property # 3 (Indianapolis, IN)

Rent paid on time and no new repair requests have been made.    These tenants have submitted the most repair requests out of any other of my rentals.  They are really picky but they pay on time which is great.

This is my first turnkey rental property I purchased out-of-state in Indianapolis. I do not expect much appreciation on this property. I purchased this for CASH FLOW purposes only.

Property # 4 (Austin, TX)

Mortgage paid on time. No issues. This is a note that I own from a house that I sold via owner finance in the Austin area.  If you notice though, the reason why this asset will continue to go down from the spreadsheet above is because it is a note and the principal balance on it goes down each month as the buyer pays me. Remember, I’m the lender on this one.

Property # 5 (Independence, MO (KC))

I am officially selling this property and is currently under contract pending sale.  The tenant has paid the rent and no new repair requests since replacing the dishwasher last month.    This tenant signed for a 2 year lease back in March which is huge.

This was the last turnkey rental property I purchased located in the Kansas City area.  I bought this in late October 2015. I purchased this property also for CASH FLOW purposes only. I am not expecting appreciation gains on this one.

Property # 6 (Indianapolis, IN)

Rent paid on time and no repair requests made.  This tenant is in their 3rd year leasing.  Freaking great!!!    This one was the property I originally wanted to convert to an airBnb but since the tenant renewed the lease I never did so I ended up converting property #8 into an airbnb instead.   This tenant has been great so far and I don’t want to ruin that.  Easy cash flow baby!!

I bought this rental property from a wholesaler here in Indy after I moved here.  I paid this one in cash and it came with a properly screened and paying tenant which was great.  The property needs some fixing up however I won’t mess with it until after the tenant moves out or submits repairs.

Property # 7   (Indianapolis, IN)

This property is now a full-time airbnb vacation rental property and it’s going well but not as great I as initially wanted.  The competition here in Indy is fierce on vacation rentals.

I officially converted it into an airbnb in late January 2018 and it has been keeping steadily booked and we are making money.  This was a traditional rental property which was rented for $950.  After a year of having it as a rental, I decided to convert it into an airbnb because of its great location.  You can see how much money I made in the first two months of being on airbnb here.

I bought this house from a wholesaler here in Indy for $65k in a very popular Indy neighborhood back in late October 2016.   I put in about $20k getting it rent ready.    And an additional $10k to make it airbnb ready.

Property # 8  (Indianapolis, IN)

This is my latest rental and so far I have received all the rent payments on time.  No repair requests made.  I am not expecting any repairs anytime soon as I fully rehabbed this house.

I bought this home as a foreclosure off the MLS.  Paid in cash, fixed it up and rented it out.  Check here for all the numbers and details of this property.

Property # 9  (Indianapolis, IN)

I bought this house as a fixer upper in April 2018 from HUD in what my opinion is the best neighborhood in all of Indianapolis (Holy Rosary/Fletcher Place).  I purchased it for $120k using a rehab loan (kinda like a 203k loan) and I will be moving into this home when it’s complete.  It will be my new primary home and I will have about 50k built-in equity right from the start.  It will also make for a good investment property if I ever decide to convert it to a rental.  Total loan on this after the rehab will be $250k and the house was already appraised with an after repair value of $300k.

Property # 10  (Indianapolis, IN)

This one is my flip project and is in full-blown rehab mode right now.  It is a full down to the studs rehab so will take a while to complete it.  I bought this house in May 2018 from a distressed seller in a popular neighborhood in Indianapolis.  Purchased cash for $56k.   This one will be my first intentional flip. My initial numbers are:

Purchase Price: $56k
Rehab Price:  $110k

Sale Price:  $230k (hopefully!)

Liabilities: These are self-explanatory so I wont dive too deep into these however I would like to include the items below for informational purposes.

Credit Card

I only use one credit card (rewards card) that I use to purchase my everyday expenses. I pay this off in full every month. I am receiving 1.5% cash back on this card and am very pleased with it. Satisfied!

 

Last 30 days net worth graph from Personal Capital

This month’s chart shows a big gap increase again because I adjust what my primary house value was due to getting an actual appraisal on it for the HELOC.   I love this chart! It looks great and its nice and big.

 

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