This is my official July 2017 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 07/31/2017. 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: $531,832
Quick Summary and comments: -$2,479
July was a very productive month although my net worth took a small hit. In my last post I revealed all the details of my newest rental property and I am excited because I was able to find a tenant to lease it in just one week. I spent the beginning part of July finishing the rehab on that house and then mid July looking for a tenant. This is great because now I will be getting an extra $1k in cash flow from my new rental. Pretty cool! I also had to replace an HVAC unit on my very first rental property in Austin, TX. This is the main reason why my net worth took a dive. See more details below in my Property #2 summary.
Other than that, my wife and I took it pretty easy. We did not travel anywhere and we made an effort to try to not spend as much money as we normally do. Now that I am back in savings mode, I would like to cut out some of the spending we have been doing all year. Wish me luck!
Real Estate Investing Update: Since I literally just bought, rehabbed and placed a tenant in a new property this past month I am back in savings mode. I will always still keep an eye out for killer deals though because I love the hunt and plus I don’t want to miss out on anything good. I don’t necessarily have the money right now to purchase another one and rehab it but I will figure something out if a killer deal falls in my lap. Or ill just wait until I am ready which probably wont be until late this year maybe even early next year. We will see what happens.
Okay enough about that, lets jump into my net worth categories.
Assets: Explanations of each of my assets.
My cash usually only goes down when I have a big expense and this past month I had a big expense! See property #2 below for more info. I typically keep a large amount of cash ready for the sole purpose of being able to pull the trigger on a rental property if a good deal falls on my lap.
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. Satisfied! (Sort of)
HSA account: -$244
Slight decrease in my HSA account due to a doctor’s appointment. Nothing crazy.
My HSA deductible is $1300 for the year and I have close over $5k in this account so with that being said, since I am maxed out already with my yearly deductible, I don’t see a need right now for depositing more funds. I am only taking a very small amount out from my day job paycheck to fund this account. Any money after that deductible will just sit in that account not making me money. I know I can use the money that I don’t put in there to get better returns as long as I invest it in more real estate. This number should increase each month a tiny bit. Satisfied!
Company Stock Options: +$805
Slight increase in my stock options. These are hovering at all time high’s and I am highly contemplating cashing out on these bad boys as soon as my company freeze is done within a month or so. We’ll see.
These are stock options from my day job. I am fully vested. Satisfied!
Stock Portfolio: +$52
My stock portfolio is built of precious metal mining stocks. It has been a roller coaster ride with these as expected. I finally saw a slight increase on it. It has been on a negative slope for a few months now. I’m not too worried about what these do in the short-term. 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.
I bought all my shares using tradeKing which is now Ally. Satisfied!
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. Satisfied!
Property # 1 (Indianapolis, IN)
All is good with my primary residence. We are actually thinking of fixing up our backyard a bit. We would like to build a deck and a fire pit so we can spend more time outside especially now that the Fall weather is coming. That is my favorite time of the year. The only problem of course is that it cost’s a lot of money to build a deck. I may get a few quotes to see exactly how much.
My primary residence in Indianapolis. This was originally a turnkey property I bought back when I lived in Austin. I bought this house for $67k almost 2 years ago. Spent an additional $30 in renovations when I moved into this house. I love the location, the size of the house and because my mortgage on it is less than half of what I was paying when I was living in Austin, TX. Super Satisfied! Here are more details on when I originally bought this one as a rental property.
Property # 2 (Austin, TX)
Rent paid on time as always however this time the AC finally gave out. I knew this day would finally come as the house is still using the same roof and HVAC from 17 years ago. It cost me $4200 to replace it which I thought was a smokin’ deal. I was pleased to put in the new HVAC unit because now I know I am good for the next 15 to 20 years. I am not pleased that I will probably have to replace the roof soon on this one also. These tenants have been amazing to me so I will pretty much always fix whatever they want fixed. I screened them myself and I am proud. 🙂 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 is my first rental property. It’s actually the first house I ever purchased. I bought it when I moved to Austin 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! Satisfied!
Property # 3 (Indianapolis, IN)
Rent paid on time and no repair requests made. These tenants in the past have been super picky and have requested more repairs than any of my other tenants, mostly really small stuff but at the end of the day, they are a good family and I am happy to keep them.
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. Satisfied!
Property # 4 (Indianapolis, IN)
Rent paid on time and zero repair requests. This property was the one that I fired my property manager from originally when I first bought it as a turnkey rental properly.
This my 2nd turnkey rental property in Indianapolis I do not expect much appreciation on this property. I purchased this for CASH FLOW purposes only. Satisfied!
Property # 5 (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. Satisfied!
Property # 6 (Independence, MO (KC))
Rent paid on time and no repairs on this one either. To date I have never had a repair call on this one and I have now had this property for about a year and a half. Its been a cash cow! This is 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. Satisfied!
Property # 7 (Indianapolis, IN)
Rent paid on time and zero repair requests. This one was the property I wanted to convert to an airBnb but since the tenant renewed the lease, I will put the airbnb venture on hold. The 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. This is the one I really want to convert to an AirBnB. Satisfied!
Property # 8
Rent paid on time and no repair requests. Life is good!
I bought this house from a wholesaler here in Indy for $65k in a very popular Indy neighborhood back in late October 2016. I finished the rehab on this one in late November/early December 2016 and got it rented out for $950 just in time for Christmas. December is not easy to find a qualified tenant. Not only did my property manager find a qualified tenant but the tenant signed an 18 month lease so that we both don’t have to deal with a vacancy/move in December again. Talk about a Christmas miracle!!! Satisfied!
Property # 9
I literally just purchased this last month, rehabbed it and placed a tenant only a week ago. Looking forward to add an extra $1025 in my pocket each month. 🙂 Satisfied!
I bought this home as a foreclosure off the MLS. Paid in cash. Check here for all the numbers and details of this property.
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.
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
Although this month’s chart is boring and negative, I really do love this chart. It looks great and its nice and big. Good stuff!
If you want to set up and track your net worth online like I do, create a FREE account at Personal Capital.
There you have it folks! How was your month? Subscribe here if you would like to receive emails on future posts including more net worth updates.
A new HVAC unit in Texas will pay off for years to come. Saving mode as summer wides down sounds good to me. We are looking to reduce expenses too.
Saving money = Joy!! 🙂
Since you are fully vested in your stock options – tell your company you want more of them! I know that most Silicon Valley companies will give more rather than risk the employee jump ship.
Hey Brian, You know they actually gave me an extra 1000 last year but only disbursing a quarter to me each year. Its their way of keeping me. Its not a bad deal at all though, the price right now is hovering right around $38 so thats equal to an extra $9k bonus per year.
This is off topic, but I purchased a turnkey property from one of your recommendations you gave after your podcast from turnkey reviews in Kansas City.
So far so good on that property and things are humming along. What were the ones you used in Indianapolis?