This is my official May 2016 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 05/31/2016. Explanations and quick summary below chart. If you would like to see my previous months net worth posts, please visit my Net Worth Tracker.
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TOTAL NET WORTH: $385,336
Quick Summary and comments: -$3,146
Last month I broke my net worth record for the most increase in one month. A whopping $16k gain which was amazing. But I also did mention that May was going to be bad because of a lot of expenses and with that being said, I have now broken my net worth record for biggest loss in one month. LOL, to be honest, it is not that much and I am really happy about it not being worse. Being down $3k is not bad at all. I feel blessed that my worst month is only a $3k loss. At the end of the day though I owe it all to my new wife’s parents. They came through and ended up paying for a HUGE portion of the wedding costs. I am truly thankful for them helping out financially and I am sure they are very happy about their only precious daughter getting married. Plus I made an extra thousand dollars in stocks so that helped keep it low too. So with that being said let’s jump in on some life happenings which occurred in May and then break down my net worth update.
Wedding Update – As of about 2 weeks ago, I am officially a married man. I am now a husband and I have a wife! So crazy! If you didn’t catch the story you can read all about my wedding here. I am in a really happy state in my life right now and things are only going to get better.
Amazon FBA Update – If you read my last amazon fba post update about the business then you know that I had begun mass production and was basically still waiting on that. Well, a month later and I am still at that point. The manufacturer told me that it was taking longer then expected and that I can expect the full product to be completed sometime in June. Jeez, it takes a really long time to get this business going. I hope it works out for me.
Okay enough about my personal life. Now let’s get to the breakdown of each asset.
Assets: Explanations of each of my assets.
Cash went down because of wedding expenses and it could have been MUCH worse but as I mentioned earlier, my new parents in law stepped up and paid a big chunk of the wedding costs we I was able to keep the negative cash flow to a minimum. So all the income I made in May plus more went to paying off the rest of the wedding expenses I had.
My cash as noted above in the spreadsheet consists of two different checking accounts. My normal checking account and my REI (Real Estate Investing) checking account. Satisfied!
HSA account: +$92
Slight increase in my HSA account from my paycheck contributions. Nothing crazy.
My HSA deductible is $1300 for the year and I have close to $5k in this account so with that being said, since I am maxed out already 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: +$2,397
These options have been going up lately and I very grateful for that. I have been reading a lot of analyst opinions about my company and where they think the stock is going. Based on what I am reading, there is still some room for growth here so I will continue holding on to these however if it reaches a certain price point, I may have to break down and sell.
These are stock options from my day job. I am fully vested. I may end up selling a bunch of these in the future if it hits a certain price. If I do sell, I would like to use the money to buy another rental property. I’m not in a hurry to sell it so I will play along with the market and see what happens. Satisfied!
Stock Portfolio: –$1,203
Most of my stocks are in precious metals (mining stocks) and they have been growing rapidly pretty much all year. There is some news about the fed increasing rates soon and this of course typically affects the precious metal industry in a negative manner which is why these stocks are going back down. I would not be surprised if they keep going down for a few months but I fully expect high volatility out of these and I still want to hold on to these. At the end of the day, I think the precious metals industry is at the beginning stages of a bull run after being in a bear market for about 5 years. I kind of am hoping for these to get cheaper because I want to buy more!
I finally revealed my stock portfolio so you can see more details on it. Satisfied!
Crappy 401k! Ugh!
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. I really don’t like the idea of having an account that punishes me to take money out because of age. Satisfied!
Property # 1
This is my primary residence. The market I live in is extremely hot and I expect the appreciation on this house to continue to grow however I will only update the market value once a year, in January of each new year. Satisfied! Here are more details on this future investment property.
Property # 2
Going now on month 2 with my new tenants and so far everything is going great. I have not heard a peep out of them and they are locked in for 2 years so I’m hoping this one is a cash cow for the next few years.
This is my first rental property. It used to be my primary residence. I expect gradual appreciation from this property as well because it is in the suburbs of this HOT market I live in. Love me some HOT markets! 150K is about what its worth now based on MLS comparisons. Satisfied!
Property # 3
The tenants on this one decided not to renew the lease so this house will be going vacant in Mid June. Once the house is vacant, my property manager will assess the damage and figure out what is needed to make the house rent ready again. Hopefully we can find some good qualified tenants on this one ASAP! Otherwise, rent paid on time so all is good. Next month I’ll let you know how much damage and all in costs was needed to make the house rent ready again.
This is my first turnkey rental property I purchased out-of-state. I do not expect much appreciation on this property. I purchased this for CASH FLOW purposes only. Satisfied!
Property # 4
This is the property in which I fired my property manager from. At this point everything is fine, the tenant is happy but I did have to fix a plumbing issue. This house was having reoccurring plumbing problems and we finally got it fixed. About $800 later, there were roots causing problems in the main pipe going out to the street. This problem should be fixed for a long time now. Hopefully!
This my 2nd turnkey rental property. I do not expect much appreciation on this property. I purchased this for CASH FLOW purposes only. Satisfied!
Property # 5
Mortgage paid on time. No issues. This is a note that I own from a house that I sold via owner finance. 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
This house is also about to go vacant as of June 1st. Damage will be assessed probably this week. Next month I’ll let you know how much damage and all in costs was needed to make the house rent ready again. Otherwise, all rent was paid on time and no repairs.
This is my 3rd turnkey rental property, I purchased it in early June 2015 and I absolutely love this house. I do not expect much appreciation on this property. I purchased this for CASH FLOW purposes only. Satisfied!
Property # 7
Rent paid on time, no issues, no repairs. This is my most recent turnkey rental property, I just 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!
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!
I purchased this vehicle before I had the proper knowledge on how to be totally awesome with finance and investments so that is the only reason why I have this loan. If I knew then what I knew now, i would have purchased a used vehicle all cash. It is not worth it to me to pay this loan off because the interest rate on this loan is 2% and I would rather use that money to buy more rentals where I will make a much greater return. I will continue to pay it down slowly. Satisfied!
Last 30 days net worth graph from Personal Capital
I really do love this chart, it looks great and its nice and big. As long as it keeps going up, im happy! 😉
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.