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.