January 1st 2022 – Net Worth Update

 

This is my official Net Worth Update for January 2022. Below are my actual numbers for ALL my investments and liabilities as of 01/01/2022. 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 track your net worth then check out how I am doing it for ideas.

How To Track Net Worth

 

 

 

TOTAL NET WORTH: $1,475,481

 

Quick Summary and comments: +$260,113

Wow it has been almost 1 full year since I last posted on this blog.  With 2021 ending and because I was curious to see how my net worth has changed over the year, this is the perfect opportunity to update the blog with a new net worth update post.   This past year my net worth has increased a whopping $260k!!  I am very pleased to see this and looking at the chart, most of it came from real estate appreciation which was expected.   My wife also decided to get a job in 2021 (she was not working for the last 4 years we have lived in Indianapolis) so our cash position is growing much stronger because of the new income.

 

Personal Life Update:

I have two kids (3 year old and a 2 year old) who are amazing and making the time go by really fast.  My wife and I are doing great despite the struggles of raising two toddlers and living in this post-covid world.  We are still happily living in Downtown Indianapolis and are living a stress free life.   I am a part-time realtor with most of my income coming from my rental properties so I work on my own time and it’s usually less then 20 hours a week.

I have lot’s of time to spend with my children and working on my hobby of trading crypto.  I am not very good at it yet but I love it and it’s very addicting.  I have always had a gambling type personality and it’s a great way to occupy my free time for now so I am really enjoying this new hobby.  Not to mention I am only using play money (about $15k) to mess around with at least until I get confident enough to where I think I won’t lost it all.  It’s a very risky space to enter and super volatile.

 

Real Estate Investing Update:

Unfortunately I was not able to acquire any new properties in 2021 despite putting offers on about 10 different properties.  I was outbid on all of them and the market here in Indy is really tough to get any deals right now.   Investors are overpaying these days and accepting low returns on their investment properties which make it very difficult for me to land a new property.   I am quite comfortable with the investment properties I have now so I have no urgent need to add another rental although I definitely do want to.   I still am always on the lookout for any new potential fixer uppers and have the cash ready to make an offer if something comes along.   I am hoping I can acquire at least one new rental property this in 2022.

I am still very passionate about real estate investing and would like to add at least two more rental properties to my portfolio to feel fully financially independent.

Below is an explanation on each of my assets and liabilities if you are curious about them.

Assets: Explanations of each of my assets.

Cash:   +$122,798

My cash position is strong thanks to my wife’s new income.  We are able to grow the account faster and have very little debt.  I am okay with keeping this amount in my account so that it’s readily available to make a fast cash offer on any new potential investment property.

HSA account: -$5,000

We stopped contributing to our HSA because the balance was higher then we needed but now that we have been using the funds, we will start adding more to it.   My wife took out $5k for Invisalign which our insurance didn’t cover at all so that was the big drop in our HSA.

Crypto Portfolio: +$7,517

This number is actually deceiving because the gain is from me making cash deposits.  Not from trading earnings.  To date, I am actually down about $1500 from trading and it all actually just recently went down as Bitcoin has been in the dumps for the past few weeks.  At one point I was up over $5k earlier this year which was fun.

As mentioned above, this is just a hobby for me and I am still learning how to trade effectively.  I have learned a lot over this past year and am hoping I can make some significant gains this new year in this crypto space.

Stock Portfolio: -$6,284

I have never really been into stocks and cashed out all my money to deploy it into crypto.

Property # 1 (Indianapolis, IN)

All is good with my primary residence at this time.  We live in downtown Indianapolis and we love living here.  We have a carriage house that we built in the back which we use as an airbnb and it did amazing this past year despite covid times.

My current primary residence in Indianapolis.

Property # 2 (Austin, TX)

My tenants have now been there for 4 years and are paying $1350 per month.  I increased the rent $50 over the past year.  They are amazing tenants and keep the house in great condition.  I am very blessed to have these awesome tenants for so long at this rental.

I self manage this property remotely and if these tenants ever decide to move out, I will consider selling this house.

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 which is now.   It has appreciated tremendously and I am very happy about owning this house.

Property # 3 (Indianapolis, IN)

These tenants have been there for about 3 years now and are great tenants.  I increased the rent $50 on this one also over the past year.

This was the house I lived in when I first moved to Indianapolis.  It was a rental property, then my primary residence and now back to a rental property.  It’s a cash cow and I love this one a lot!

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 when we first came to Indy.   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.

This was my first turnkey rental property I purchased out-of-state in Indianapolis when I was living in Austin.

Property # 4 (Indianapolis, IN)

Tenants are also on their 3rd year which is awesome.  Rent always paid on time.  No repair requests in a very long time.   Current mortgage on this one is $0.  Paid for it all in cash!    It’s currently rented at $1100 monthly.  I have not increased the rents on it because they are great tenants.

This was the rental that I had originally converted it into an airbnb in late January 2018.  It actually did make more money as an airbnb then a traditional rental but not that much more.  At the end of the day, it wasn’t worth it to us to maintain and clean it was a new baby coming.  We just didn’t have time and if we hired cleaners, it would have only left us with a few hundred more per month then a normal rental.   We decided to convert this back into a normal rental.

Grow your net worth today with your FREE Personal Capital account.

You can see how much money I made in the first two months of being on airbnb here.

I bought this house as a wholesale property 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.    Added an additional $10k to make it airbnb ready.  All in for about $100k as of now.

 

Property # 5 (Indianapolis, IN)

The tenant is just about to hit their 1st year of renting in a few months. I am not sure if they will be staying yet but they have been good tenants so far so I hope they stay.

I bought this home as a foreclosure off the MLS.  Paid in cash, fixed it up and rented it out in 2017.  Check here for all the numbers and details of this property.

 

Property # 6 (Indianapolis, IN)

This one had a tenant turnover a few months ago and surprisingly, the tenant left the property in such good condition that I didn’t have to spend one penny on getting it rent ready for the next tenant.  I was able  to find a new tenant in 24 hours and increased the rent by $100.  Amazing!

I purchased this property for $105k from the MLS back in March 2020.  I put in $58k to rehab it for an all in cost of $163k.

 

Property # 7   (Indianapolis, IN)

This is actually my only problem child.  It was a house I bought a few years ago that came with a tenant.  These tenants are still there and have had multiple late payments.  They always end up catching up but it has been a headache dealing with them.  Not to mention, the house has needed lots of repairs in the time I have owned it.  About a month ago I had a $5k plumbing repair which I was not happy about.

Fortunately though, I have seen tremendous appreciation on this house so that easily makes up for all the problems I have had with it.  Despite the tenant issues, this is a great investment property.

 

Property # 8  (Indianapolis, IN)

The tenants are on year 2 and have already told me they will stay at least 3 years which is great.  They are really good tenants and the house is in great condition which leads to very little repairs.  I think I have only received one repair call from them and it was about a $20 fix from what I recall.   Amazing!

I bought this property back in November 2020 also as a fixer upper.  Purchased for $90k, spent $30k to fix it up.

 




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.

 

Latest net worth graph from Personal Capital

If you want to set up and track your net worth online like I do, create a FREE account at Personal Capital.

 

Subscribe here if you would like to receive emails on future posts including more net worth updates.

Please show some love by sharing this article.

Cash Flow Diaries

4 Comments

  1. First of all… Welcome back!!

    Second of all… If your tenants in Austin ever move out and you want to sell the property… I would LOVE to purchase it 🙂

    Great update!! I can’t wait until you reach the multimillionaire status.

    • Thanks David!! Did you ever end up buying a house in Austin? The market is insane there.

  2. I’ve been following you for 3 or 4 years now. You’ve built up some real momentum even if you haven’t added any new rental properties of late. Congrats!

    Going forward, I have a hard time believing crypto is real, but what backs up the gov’t currencies either, right?. I would say that if single family rentals is getting tough to find a good deal at the moment, you may find more opportunity in another asset class. You could also take some (not all) of your current cash flow to accelerate a debt snowball and increase cash flow that way starting with Property 3 and then Property 2 while still maintaining flexibility for new deals. But you know what, you’ve proven to be a savvy investor and don’t need my help. I’ll keep an eye on you and root you on.

    • Thanks! Actually your advice is very helpful. I have been thinking a lot lately about paying off some of my remaining mortgages. Deep down inside, it feels smarter for me to use my cash to buy another rental but if I cant find any, then it makes sense to pay them off. 1st world problems!!

Leave a Reply

Your email address will not be published. Required fields are marked *