May 2018 Net Worth Update

 

This is my official May 2018 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 05/31/2018. 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: $705,829

Quick Summary and comments: +$7,135

 

Holy cow!  Life is unbelievable for me right now.  I think I might be the happiest I have ever been in my life.   My net worth continues to increase each month, my investments are all doing quite well (in my opinion), finances are great and most importantly, I AM FINALLY A DAD!!!     My precious little baby girl was born on May 8th and she is now 3.5 weeks as I am writing this.    The baby has consumed our lives, we are running on very little sleep but I still find myself super content in life.    It’s amazing really!

My net worth has been consistently increasing over the last few years and I can’t believe I am in the 700k range now.   At this rate, I should be a millionaire in 2 more years.  Sooner if my properties continue appreciating like they have been however if we get some kind of economy crash then I can kiss all that good-bye.   We’ll see what happens and to be honest, it doesn’t really matter all that much.   What is most important to me is to continue building my cash flow so I can sustain a life without a w2 job someday.   So far I am on the right track.

Personal Life Update:  Life has never been so different for me these days.   I am now a parent of a newborn, my days of partying are over and my real estate investing continues to grow in the right direction.   I have more huge news from my real estate investing as you will see below.

Real Estate Investing Update:   Last month I revealed a new property #10 which I bought as a fixer upper with a rehab loan.  This property is being renovated right now and will be my new primary home once it is complete.  This property has already been appraised at $300k (after repair value).  Although I am getting a nice chunk of equity from the start with this one, I don’t really consider this property an investment since it will be my primary home.  The good news is though that it will be an awesome investment property if and when I ever decide to move out of this property in the future.

So anyways, for my latest news, I bought ANOTHER PROPERTY!!   Property #11 is now in the books and I got super lucky with this one.   I bought this direct from a distressed owner for dirt cheap (56k) in Bates Hendricks which is an awesome neighborhood to invest in here in Indianapolis.  This one needs a full gut rehab and will only work as a flip.   It will actually my first full-blown intentional flip.  The numbers were too good to pass this up so I had to pull the trigger on it.  I’ll probably write a separate post about this later on but I should see really nice returns on this one.

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

Assets: Explanations of each of my assets.

Cash:   -$53,960

Huge cash drop here because I used that money to buy property #11.  This should be totally worth it because after I am done flipping this house, I will get all that plus a bunch more.

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: +$300

I bumped up my HSA contributions to anticipate a lot more medical bills in the near future.  You know, for baby stuff!

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

Company Stock Options: +$4,341

Saw a big price increase in these which is amazing.  This stock has been nothing but awesome ever since I have had it.  Such a great company to invest in and work for.   Since I am not hard-core pressed for cash right now though I will just let these stocks sit there.  Hopefully it will continue to grow.

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

Stock Portfolio: +$239

My stock portfolio is built of precious metal mining stocks.   It’s super volatile but prior to this month, it was actually going up for a few months which was nice.   Unfortunately this is just the nature of the game for this industry.  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: +$70

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.  Since I purchased property #10 and will eventually move in to it.  This current primary home will go back to being a rental property later this year.  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, it’s now worth a lot more than that which I very happy about.    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 repair requests were 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 (Indianapolis, IN)

This property hit the MLS last month and had multiple offers submitted within a week.  It’s currently now pending and hopefully it should be closing in the next few weeks.   I should be seeing a hefty profit upon selling this one and can’t wait to write about it.  It’s being sold for way more than I thought it was worth initially.

The tenant moved out at the end of March and I decided that I would rather sell this property than to rent it out.  It was actually a great cash flowing property and will make for a really good rental for someone else.  Why am I selling?   After living in Indy now for almost 2 years, I have decided to be even more particular about where I want my properties to be and this property does not fall under my new criteria.

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This was my 2nd turnkey rental property in Indianapolis. I purchased this for CASH FLOW purposes only back when I lived in Austin still. It seems I will be making some nice appreciation profit as well after all once its sold.  This was also the one where I had to fire my property manager.

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.

Property # 6 (Independence, MO (KC))

Tenant has paid the rent on time and no further repair requests have been made.    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 # 7 (Indianapolis, IN)

Rent paid on time and the tenant decided to renew the lease for year #3.  How awesome is that?  3 years with no turnover and rent paid on time every month.  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 # 8   (Indianapolis, IN)

This property is now a full-time airbnb vacation rental property and it’s going good.  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 # 9  (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 # 10  (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.  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 # 11  (Indianapolis, IN)

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.  The plan is to do a full gut rehab and sell it as soon as its completed.  Numbers to come soon but my initial estimates look very promising.




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 because that is when I bought property #11 and then added it back as an investment property at the end of the month.   I love this chart though. It looks great and its nice and big.

 

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Cash Flow Diaries

7 Comments

    • Thanks Brian! Mom and Dad are doing pretty darn good other then the lack of sleep but we are pretty much used to it already after 3 weeks. We are soaking it all in still and trying to enjoy every second of her for sure.

  1. Congrats on the baby and on property #11! Wow you are a busy man. I was thinking the same as Brian…figured you’d slow down with all the stuff you have going on but awesome that you’re able to juggle everything! Where did you find the property that was distressed? Was it off the MLS, wholesaler, or something else? I’m chomping at the bit to buy more properties but need to see how my AirBnb experiment goes first, plus I need to build up some cash.

    • Hey Andrew! Yeah I was surprised about property #11 but it was just too good a deal to pass up. Honestly, it just fell into my lap. It’s a house across the street from where I live and I spoke to the owner just randomly. We talked and after about 3 weeks of working him, i struck a deal to take it off his hands. He was trying to rehab it himself but ran out of money and he inherited the property from his mother. It was just being at the right place at the right time. House was never listed anywhere and I just bought it as if I was a wholesaler myself. Was actually the first time I have ever done that.

      I think it would be smart to see how your airbnb experimient goes first also, ours is still going strong but May wasn’t as good as it should have because I had to block almost 2 weeks of it being available because of the baby/birth and all that. We havent figured out how to have someone manage/clean and do the laundry on our airbnb while we are not available so are having to block dates when we know we wont be available. Not ideal and definitely something we need to figure out.

      • Yea, you’re right…it probably makes sense to wait and see. I think you should definitely look into outsourcing some of those Airbnb duties. Your best use of time is to find more deals. Plus with the baby and all…time is too valuable to cleaning apartments. I think if you can get reliable cleaners, it will free up a lot of your time. You can always raise your cleaning fee if it cuts into your costs. I’ve been binging on Airbnb podcasts and hear plenty of people doing well in Indy. Good luck!

  2. Thanks for providing such detailed information. Your blog is super helpful. My husband and I are interested in real estate investing in Indy too. Do you typically purchase your properties via MLS or through other sources? If the latter, how? Also, do you have certain contractors that you would recommend for flips?

    • Hi Tyesha! Thanks for the comment. I do sometimes purchase from the MLS but lately it has been more from wholesalers or finding properties off the MLS. There are still deals to be found occasionally on the MLS though, i see them from time to time.

      Unfortunately I still havent found a reliable contractor that I can keep using or recommend. I have had to use different guys each time.

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