This is my official September 2018 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 10/01/2018. 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: $845,245
Quick Summary and comments: +$21,154
Holy cow my net worth has been growing like crazy this year! Once again I saw another big increase due to real estate investing. Well not entirely true actually, I got a big boost from RSU’s (company stock options) that were given to me for free from my day job company as a bonus this past month. So I made over $25k from those and the rest was from selling one of my older turnkey rental properties. I sold my KC turnkey rental property and saw a nice chunk of change from the equity I had in the property. Keep reading to find out why I sold this property. That makes two rental properties I sold this year already.
I really hope the economy doesn’t crash soon and I am able to keep building my empire for another year as I plan on making a lot more money from real estate in 2019. (Hopefully!!)
Personal Life Update: Things are better than ever in my personal life. I went white water rafting in the Gauley River (West Virginia) a few weeks ago with my buddies and it was super intense and a ton of fun. Class 5/6 rapids are no joke! On top of that my little girl is almost 5 months old, my wife is doing great, we are all in good health and really enjoying our new life as Mama and Papa!
Real Estate Investing Update: Okay so I sold another turnkey rental property that I had purchased about 3 years ago. This time it was the one I bought in Kansas City. I sold it because I wanted to free up the cash I had in that property so I can use it to continue building my empire here in Indianapolis. Now that I have been living in Indianapolis for 2 years, I feel really comfortable and confident that I can grow my real estate business here faster than I can anywhere else. I was able to free up about $20k from this purchase and it also eliminated one of my mortgages which is an added bonus.
With all this extra cash I received from the stock options and the rental being sold, I plan on turning around and using all that money back into real estate investing. As a matter of fact, I just put a new house under contract a few days ago that I will be buying in cash. This new one is in Bates Hendricks (a very popular, gentrifying neighborhood) however it is a complete fixer upper. I’m talking full gut job here. I will probably not have enough funds to flip this one so there is a very high chance I will just sell this one wholesale to another investor. I’m hoping to make a quick $5k in profit doing it this way. We’ll see what happens and I will keep you posted.
Other than that, my new primary house I will be moving into is still being rehabbed and the contractors are taking forever. I am definitely not satisfied with how long they are taking to finish the job but it’s pretty much out of my control at this point and I just need to wait. On that note, my flip that I have going is also already taking longer than anticipated to finish rehabbing. Surprise Surprise right!! This one is not too far back on schedule but it’s enough to make me dissatisfied with it. My only concern now is that it won’t be ready to market until winter time which is the worst time to sell a property.
Okay enough about that, lets jump into my net worth categories.
Assets: Explanations of each of my assets.
Wow I all of a sudden have a ton of cash available. About $15k of that is saved already for what I am going to owe in taxes so scratch that out. The rest I will use to invest in more real estate. About $44k of that will be gone this week if I end up closing on that new fixer upper I mentioned above.
I also am still expecting my cash position to decline as I continue working on my flip. I didn’t have to pay any money this past month because of contractor delays but I am planning on using up all my cash for the flip and then dip into the HELOC (lines of credit) for the remainder. I will leave a good $20 to $30k though in the Lines of credit for any emergencies that may arise. Once I sell my flip, I will pay off the Lines of credit and replenish all my cash!! And then hopefully see about starting that cycle all over again.
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: +$615
Seeing a decent increase in my monthly HSA account. We haven’t had any new baby bills or anything pop up so that is great and this just gets automatically deducted from my W2 paycheck.
My HSA contributions are automatically deducted each paycheck from my dreaded W2 day job.
Company Stock Options: -$1811
After months and months of this stock going up, it finally went down a bit. Im okay with that though and am not worried about this at all. They keep giving me new RSUs every year as bonus and I will take that any day of the week!
These are stock options from my day job. I am fully vested.
Stock Portfolio: –$105
No surprise here. Precious metals have been getting hammered lately. My stock portfolio is built of precious metal mining stocks. 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.
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. This current primary home will go back to being a rental property later this year when I move into property #9 which is being rehabbed right now. 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. 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 they submitted for more repairs. This time for some critters in the attic. I am in communication with the property management about correcting this permanently as this is now the 3rd time in 3 years they have had this problem. It’s a huge pain! 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 (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 # 5 (Independence, MO (KC))
This is the property I just sold a few weeks ago. I sold it for $55k and I had bought it for $45k. I also made a lot of cash flow from this one over the 3 years I purchased it. Overall it was a good investment and did its job great! I am happy to free up the mortgage though and use the equity gained to fund future investments here in Indianapolis.
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 did not expect any appreciation gains on this one so it was nice to see it appreciate a bit.
Property # 6 (Indianapolis, IN)
Rent paid on time and no repair requests made. This tenant is in their 3rd year leasing. 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 # 7 (Indianapolis, IN)
This property is a full-time airbnb vacation rental property and it’s going well but not as great I as initially wanted. The competition here in Indy is fierce on vacation rentals.
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 # 8 (Indianapolis, IN)
Rent paid on time. No repair requests made. Things are great with this one!
I bought this home as a foreclosure off the MLS. Paid in cash, fixed it up and rented it out in 2017. Check here for all the numbers and details of this property.
Property # 9 (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 (Holy Rosary/Fletcher Place). 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 # 10 (Indianapolis, IN)
This one is my flip project and is in full-blown rehab mode right now. It is a full down to the studs rehab so will take a while to complete it. 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. My initial numbers are:
Purchase Price: $56k
Rehab Price: $110k
Sale Price: $230k (hopefully!)
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!
Last 30 days net worth graph from Personal Capital
This month’s chart shows a big gap increase again because I adjust what my primary house value was due to getting an actual appraisal on it for the HELOC. I love this chart! It looks great and its nice and big.
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.