This is my official September 2016 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 09/30/2016. 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: $425,189
Quick Summary and comments: +$6,761
My net worth went up this month after having a negative month and after spending a lot of money!! As you can see my cash position went down drastically mainly because I finished paying off the rehab done to my new primary house but the biggest news of all is that I bought a new rental property and paid CASH!!! Since I moved to Indianapolis to help me retire faster, I was on a mission to buy more rental properties to add to my portfolio and increase my monthly passive income. I am happy to report that as of last week, I bought my first rental property as an Indy resident. The plan is officially in progress!! It took me awhile to find a property that I really wanted and I was lucky to enough to find one right here in the neighborhood that I live in. I will be writing up a detailed post in the near future with all the numbers and explanations on this new rental property so stay tuned. Okay so back to my net worth, honestly the only reason my net worth was positive this month was because my company stock options were not listed properly in my Personal Capital account and I only just noticed it now. I actually had more vested shares then what was originally recorded. So anyways, I fixed that and now I am back in the green!!
Here are 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 two months after making this drastic move to help me reach financial independence early. We are really liking our new lives and life has drastically improved. We have been biking all over downtown, checking out new restaurants, making new friends and enjoying the beautiful weather so far. Not to mention, I finally bought a new rental property as I noted above which I am really excited about. I am actually currently in the process of looking for another rental property as well but it is very difficult finding the kind of property I am looking for. More on that later.
Amazon FBA Update – Well if you did not read my latest Amazon FBA update, then you should seriously check it out. I broke down all my numbers and expenses to date and my product is now entering month #2 of selling. To date I have sold close to 200 items and am pretty satisfied with it. Amazon has paid me about $1500 so far in sales and its trickling in. Now I just need to keep selling!!
Okay enough about my personal life. Now let’s get to the breakdown of each asset.
Assets: Explanations of each of my assets.
I bought a new rental property for $50k, paid $12k for my final rehab bill. That alone is a huge cash drop however my wife and I finally consolidated our checking accounts and I was able to bring her $8k savings over to my account which actually helps a lot. In other words, I spent a ton of money this past month but I did add a new paid off asset to my rental portfolio so that is a big step forward. Oh and I also got my first amazon payment for the sales I have done on my amazon product which was about $1500.
My cash as noted above in the spreadsheet consists of both my wife and my checking accounts. Our joint checking account and my REI (Real Estate Investing) checking account. Satisfied!
HSA account: +$125
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: +$7,397
This number is deceiving. The price on the actual stock didn’t change much at all. What happened here is that I noticed that I forgot to include in my Personal Capital account the newly vested shares I acquired about a month ago. So I added those and its it gave me a nice bump!!
These are stock options from my day job. I am fully vested. I will 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: –$630
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 I have more than doubled my investment which is great. However this past month they are falling back down again. There appears to be a big correction happening right now in this sector. Im not worried about it at all, im just planning on riding it out. I bought all my shares using tradeKing. I am still convinced that we are still in the beginning stages of a multiple year bull run in precious metals. I think after this correction and leading up to next year that the stocks will continue to rise. This is all speculation of course based on all the research and news articles I have been reading lately on what is going on in the precious metals sector. 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. 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.
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 and no repair calls. Everything seems to be running okay with this one now after them submitting multiple repair requests in the last few months.
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, no issues, no repairs. 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!
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. 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!
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.
Congrats on the purchase of the 7th rental property in cash! What’s the expected rent on the house? Sounds like the overall move has been a step in the right direction. Continued success!
Thanks Brian!! The new house I bought is rented at $800. Ill be writing up a detailed post on that new rental in the next few weeks. I have big plans for that house and have switched my buying criteria a bit.
Looks like another great month! Congrats on the new rental and I’m looking forward to that future post. Missed you at FinCon, but it looks like you had plenty going on last month.
Congrats on the new rental! Awesome news! Curious about when you took the money out of the 401k. Did you cash out and pay a penalty? Also, FYI I’ve set up my own net worth tracker based on yours. So far I have my primary, one turnkey, and I’m in the process of joining an equity partnership on a land/residential development project.
All CASH purchase for rental #7 that is awesome! Also really glad to hear your Amazon FBA site is doing really well, its always great to wake up in the morning to see more sales have gone through. I’m just waiting on a couple of my sites I invest in to run the numbers and cut the checks!
Thanks CFA! Sometimes I wake up super early and cant fall back asleep until I look at my email to see if I made any sales. LOL.
Cash! Nice Alexander! I’m looking forward to seeing how your move to Indianapolis has switched up your buying criteria–I’m already a business owner in Southern California, so I can’t make a move like yours–but, like you started, I can buy out-of-state properties to start my investment property portfolio.
I’m in escrow now on my first cash-flow property in the Indianapolis area, and can’t wait to really dig into the experience of being an owner and landlord! Good luck!
Hi Andrew! I think its a great idea to buy out of state properties ESPECIALLY if you are living in Cali! Congrats on your first Indy property! That is huge news!! Its very exciting and scary especially your first one. Good luck to you to bud!
I’m jealous. And here I am reading useless political articles and wishing I had the balls to act for myself. Great work man.
Haha that made me chuckle! Well feel free to use my story as motivation to get you to pull that trigger! 🙂
I haven’t really heard of anybody paying straight cash for their houses. I can say now that I know someone who has paid straight cash for their house, ha! Congrats Alex, it’s good that you’re enjoying Indy and making friends. I wouldn’t know where to make new friends in a completely new city haha. Here’s to you inevitably reaching the millionaire mark eventually!
Oh yeah sometimes it amazes me how far I have got to be able to purchase a property cash. It was all because of real estate. I dont consider myself smart or any kind of real estate guru but if it wasnt for real estate, I would not be where im at today and have the kind of money to even buy properties cash.
What a great month for you!!! That must be an incredible feeling to pay cash for a house. That’s amazing!!! Based on what you said it seems like you will definitely see an incredible return on your investment. Congrats!!!
Thanks Mustard! It is an incredible feeling. If I had like 10 paid off houses all making me passive income, I would be set!!
Great stuff. Did you feel you were able to get a better deal by paying cash? Are you considering adding a mortgage later or leaving it as a cash deal?
Hey Brian, the main reason why I bought the property cash was because I really like the idea of having at least a few paid off properties making me passive income. In case anything bad every happens to me financially or if I get laid off of work or anything really, then I like the comfort of knowing I have a few paid off homes that I dont have to worry about. More of a safety net. Its possible I may refi these in the future but probably not. Once I use up all the cash I made from selling my Austin home, I will go back to financing rental properties.
Hey it looks like you are making big moves in the right direction. On the properties with a mortgage, how are the cash flow numbers looking like for you? I’m Looking to buy in either Atlanta or North Carolina in the future, out of state turnkey deal. I want to have at least $350 net in profit a month, is this possible?
Hey EL!! The cash flow numbers are great for the properties I have with a mortgage. Im avereaging about 20% cash on cash returns on those so far. Im not sure about ATL or NC but here in Indy it is possible to get those kinds of numbers but its getting harder and harder to find good deals like that.
Wow man epic news there, can see why there hasn’t been many posts there recently 😉 haha
Would you ever consider assisting someone overseas buy property over there in the states?
Could be another string to your income bow there.. Keep up the awesome work Alex!
Thanks Jef!! I would probably consider helping overseas people buy property here but I would have to really sit and decide how I could help and at what cost.
Okay Alex, all good, appreciate the difficulty in setting it up 🙂 and the value might not even be a worthy venture. You’re adding great value though man so keep it up
Congrats on your progress, you’re getting very close to the 500,000 milestone mark. Ill be checking back for more updates
Thanks Darth!! Ill be hitting the 500k mark soon. At the end of the year, once I update the current home values on my rental properties I think I will cross that mark. I have had some decent appreciation on a few of the houses I own which is great.
Congratulations on your move and buying another house and in cash great. I am thankful that you share with us your story thanks again for the motivation. I would like it to know if you could help in buying houses in Indianapolis and work with us too.
Thanks Oscar! Im not really sure about helping out out of state buyers just yet but ill let you know if I start doing it. Im thinking now it would take up too much of my time driving around looking at houses and stuff.
Kudos on your most recent investment property! And I’m also interested in picking your brain more about Amazon FBA. Im working on a side hustle series and would love more feedback from someone gaining traction on Amazon. Keep up the awesome job and look forward to your next update!
I think its great you are working on a side hustle piece. I love those! Would be more then happy to give you some more feedback on the amazon biz. Let me know.