November 2016 Net Worth Update

 

This is my official November 2016 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 11/30/2016. 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 your net worth then check out how I am doing it.

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TOTAL NET WORTH: $443,938

Quick Summary and comments: +$3,352

 

The holidays are here!!  I’m really trying to avoid spending a ton of money but it just doesn’t look like ill be able to do it!   It’s just too hard this time of year with all the kids in the family to buy gifts for and all the traveling we are and will be doing.  For thanksgiving, my wife and I went back to my home town which is in the DMV (DC-MD-VA area).    We were out there for a whole week and it was really fun.  My wife got to meet a bunch of my family members she had never met before and it was a big reunion for me seeing all my old family and friends.  It had been about 8 years since I was back there so it was a very special occasion.   We went to a Washington Capitals game and spent a lot of time showing my wife our nation’s capital which she had never been to before.

In a few weeks we will be going on another vacation, this time we will be heading back down to Texas to spend time with her family.  We are driving down there from Indy and will be spending a total of two weeks travelling with multiple pit stops on the way there and back.   Should make for an interesting month of spending money!! 😉

My net worth went up this past month which was great and although it was not by a lot, it was a very significant month.   I sold some of my company stock options because it hit the mark I was waiting for however I did not want to sell all of it.   I got a $19k cash increase from selling this stock which is why you see such a big bump in my cash position.  What you don’t see is that I will be losing $4k of that to taxes when I do my taxes next year.  🙁    It’s all good though, can’t complain.    On top of that, I have been seeing more payments from Amazon for selling my product which has helped me increase my net worth.   If it was not for both of those, I would have been in the negative for cash because I have spending a lot of money and will probably continue to do so for December.

 

Here is some additional info on my personal life and amazon fba business for those of you interested.

 

Personal Life Update – I have now been living in Indy for four months after making this drastic move to help me reach financial independence early.  Everything is still going great, we are really enjoying living here and believe it or not, it has not been that cold here yet.   I just saw an article though that said this is the 2nd warmest Fall Indianapolis has had in about 70 years.   Ha, I guess we brought the warmth from TX when we moved here.  I’ll take that!!      If you read my last net worth post then you would have seen that I bought another wholesale fixer upper in which I started rehabbing.  Well the good news is that the rehab is complete and the property was just listed for rent a few days ago.  We haven’t seen any activity on it yet though and that is because this is probably the worst time to try to find a tenant.  No one is moving this time of year.  Most likely I wont be able to get this last rental leased out until January.  We’ll see and ill keep my fingers crossed.

 

Amazon FBA Update –  It looks like I am seeing a spike in sales because of the holidays.  I was averaging about 5 sold units a day however for the past week or so it has been more like 8 to 10 units sold per day.  The holiday shopping season has begun and I am glad my product is selling.    As of today I am down to about 430 units left to sell out of 1000.    I’m still looking forward to seeing how this ends.  I actually ended up lowering the price a few dollars on my product to help generate sales now that I think of it so that is also helping in this sales spike I am seeing.   This will drop my overall profit but I am okay with that.    I really just want to sell, sell, sell!!     You can check out all the posts I have ever written about my Amazon FBA business here.

Okay enough about my personal life. Now let’s get to the breakdown of each asset.

november 2016 net worth update

Showing my wife DC on bikes!

Assets: Explanations of each of my assets.

Cash: +$21,481

My cash position saw a big increase because I sold some of my company stock options and I got another payment from Amazon for selling my private label product.  If it was not for both of those, I would have been in the negative as I spent a lot of money this past month travelling and getting some early xmas gifts.

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

HSA account: +$139

Slight increase in my HSA account from my paycheck contributions. 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: –$16,735

My company stock has been doing great, it finally hit my sales mark so I sold a bunch of shares.  I didn’t sell it all off though because I don’t really need the money right now and I’m curious to see if it continues going up.  I still have a nice chunk left for a rainy day as you can see in the spreadsheet above.  Right now its still worth about $40k.

These are stock options from my day job. I am fully vested.   For now I will hold on to these and sit tight to see what happens with the stock price.  I am not in need of cash right now and don’t plan on buying another rental property until early spring.    Satisfied!

Stock Portfolio: –$1,867

The majority of my stock portfolio is built of precious metal mining stocks.   They have been on a huge upswing since I bought them and overall I am up.   However the past few months have seen steady declines and this past month it kept going down.  I’m not worried about it at all though, I’m just planning on riding it out.  I think 2017 will be a good year for these stocks.  Just have to wait and see.   Overall I am still profiting from these stocks as I bought them for dirt cheap.

I bought all my shares using tradeKing.         Satisfied!

401K: -$114

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 new primary house which is actually one of my older turnkey rental properties that I have purchased.   I moved into this rental because 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.

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Property # 2

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.   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.  Rent paid on time and no repair calls.

This is my first rental property. It used to be my primary residence at one point. I expect gradual appreciation from this property because it is in the suburbs Austin which has been growing tremendously.  Love me some HOT markets! 150K is about what its worth now based on MLS comparisons. Satisfied!

Property # 3

Rent paid on time, no repairs.  All was good on this rental for the past month.

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

Rent paid on time every single month and haven’t had any repairs on this since the last one which all went down when I fired my property manager from.    The tenant is happy, the PM is happy and I am happy.  Hopefully I will continue to not have anymore problems with this one now that we have resolved all the issues we had before with the plumbing and the horrible PM.

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

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

Rent paid on time and no repairs on this one either.    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

Rent paid on time and no repairs on this one.

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.

Property # 8

This is my newest rental.  I bought it from a wholesaler here in Indy for $65k in a very popular Indy neighborhood.   The rehab was literally just completed and the property has just been listed for rent.  I’m hoping to have this property rented out by next month.  Although this property is not making me money yet, I really like the appreciation potential on this one because of the locale and hopefully it will be bringing me $950 rent.  I paid this one in cash.




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!

Car Loan

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. The big dip you see at the end is from when I bought my new rental property cash, then it goes back up after I added it as a new asset in the account.  Good stuff!

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

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Cash Flow Diaries

13 Comments

    • Thanks Brian. I actually sold 16 units yesterday which was my new record. The holiday sales are picking up great!! There is a small change I may run out of inventory before the end of the year if this keeps up. Will keep my fingers crossed.

    • Im very fortunate to be in the position that I am in and I dont take it for granted. Although technically I do have the cash to buy another rental property, I dont want to because I only feel comfortable having a big chunk of cash readily available to handle any emergency issues with the rentals or even just medical type stuff. I do however think ill be ready to buy another rental property in early spring.

  1. Hey Alex, another great update. I really enjoy these as you are one of the only bloggers I follow who divulge this type of information. It serves as a great benchmark for your readers and I for one am really appreciative of it and to see how your strategy is materializing as you continue onto your FI goals. Great work.

    I didn’t know you were from DMV! You made the right decision leaving lol. Me and wifey are in Alexandria, VA and while the incomes are good from the DRJs (dreadful day jobs) the cost of living is just soooooo expensive. We’ve been lucky partitioning off half of the basement of our SFH (25% of the total hosue) into a separate studio that pays 50% of the mortgage, but it is still very pricey to live here. We are stuck for now but eventual FIRE is in the foreseeable future. Gotta just keep trudging along.

    Take care

    • Thanks so much Nate! Its kind of crazy even for me to go back and see how my finances and assets have changed since I started blogging. I guess it will be a constant evolving plan to reach financial freedom!

      Oh yeah I was born in DC and raised in Mongtomery county pretty much the majority of my life before I moved to Austin. Moving to Austin when I did was the best decision I ever made. It was still cheap in Austin at the time and I was able to buy my first property. There is no way I would have been able to do that in the DMV in my early 20s. The DMV is a beautiful area though, i missed all the trees but I definitely did not miss that traffic!! Haha.

      It sounds like you are doing what you can living there at least and I am pulling hard for you to reach FIRE!! Keep me posted.

  2. Hey Alex, awesome updates. I’m almost convinced to step into real estate investing domain, based on your inspiration!
    I’m scare only of one circumstance: how do you protect yourself and your assets from lawsuit? Are you using LLC, and put every property under new LLC? Or you are using some insurance, or any other kind of protection?
    p.s. still waiting your response on my email, would you look into spam folder, please 🙂
    Thanks!

    • Thanks Sergei! Real estate investing is a good thing for sure! Yes I use an LLC for the properties I bought cash and I have insurance as well. You can also look into an umbrella insurance policy to get you additional coverage.

  3. Congrats on the nice little spike in Amazon sales, cash in the bank and company stock options there Alex!
    Good to hear you’re travelling as well a bit and have an awesome month coming up 🙂

    Cheers and keep up the awesome fight!

    • Thanks Jef! Long time no talk bud. Hope you are doing well. Happy holidays!

  4. First time commenting, but have been reading for few months now. I was so impressed with your journey so far that I have set a goal to buy 1 property in 2017. I’m from San Francisco so not going happen here lol. Any recommendation on good turn key providers in Indy?

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