This is my official Quarterly Net Worth Update for April 1st, 2019. Below are my actual numbers for ALL my investments and liabilities as of 03/31/2019. 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: $881,104
Quick Summary and comments: +$14,802
Hey everyone, I am back for the 2019 first quarter update on my net worth. Its been a crazy past 3 months and to be honest both financially and in my personal life. I am quite surprised that my net worth wasn’t less if not in the red for this first quarter. Between my crappy flip attempt (property #9) and a new carriage house I am building in my personal residence, I have spent a ton of money and have a lot of money tied up at the moment which does not reflect in the spreadsheet.
I have about $80k tied up in rehab costs so far on that flip I am doing and there is still another $70 or more left of work to do. I will not recoup that money nor will it show on my spreadsheet as an asset/gain until I actually finish the property and sell it. At this rate, I am anticipating to list it in the early summertime hopefully. It has really been a disaster flip in my opinion but I think worst case scenario, I will break even. Which at this point, I would be happy with.
I also have started to build a new garage/apartment studio (carriage house) in my backyard of my primary residence. I have paid out $38k to contractors already for the first phase and its underway now. It should be complete in June hopefully. More info on this in my real estate investing section below.
Personal Life Update:
My sweet little baby is now almost 11 months old and she has consumed my life. For the better of course! Time really does fly by especially when you have a baby. It’s amazing to me to see her progress and how she has evolved into a tiny little human. LOL. Things are going great with the wife and we are going for baby #2 now. Yes we aren’t messing around and want the kids to be close in age. Not to mention we are not getting any younger.
Hopefully by the next time you hear from me, she will be pregnant with baby #2. I think we will be done at 2. Two kids have always been the plan.
I am still working my dreadful day job which I hate more than ever but I am stuck here until I can reach financial freedom. They pay me too much money and I have it to good with them to ever want to leave before I am ready. I just have to keep at it and try to keep my mind focused on all the benefits of having this day job and the perks from being able to work from home. My end game here though still is to eventually quit this job and live financially free. That was always the goal when I first started this blog and I will not reach that goal until I own as many rental properties needed to equal my salary at around $100k per year. Honestly I think I still need about 5 years to do this but its tough to say for sure right now. If I can make some smart moves after getting rid of this flip and recouping my money, it could speed things up for me.
Real Estate Investing Update:
As mentioned above, my flip from property #9 hasn’t been going well. I mentioned this in my last net worth update and its pretty much been stagnant this whole time. Because the first contractor screwed up the permits so bad, I had to find a new contractor to take over and try to fix all this with the city of Indianapolis. I am actually expected to hear back from the city today if my new plans/permits are approved so we can begin work on it again. Once the new permits are issued and approved, I’m hoping I can have it done in the next few months. It really is hard to put a date on it when it has been almost a year already in trying to flip this thing. My new contractor seems competent enough to be able to get the job done but so did my first contractor when I first met him and that turned out to be a disaster. Stay tuned in my next net worth post to see what happens.
I also started building a new garage/carriage house in my back yard. The plan is to have a 1 car garage (for personal use), a studio apartment on top of that (for investment purposes), and a roof deck on top of that (for personal use). It really is a nice design and I am very excited to have it built out. The construction has begun and we are just about done with the foundation at this point. It will be a few more months before its completed. My plan is to airbnb the studio apartment in which I think I can make around $1k per month with it.
Oh and you will notice in the spreadsheet above that I sold property #10. That was an abandoned house in really bad shape that I thought I could purchase and wholesale off for a quick profit but turned out to be a bad deal. I had no interested investors in purchasing it from me until I lowered the price to lower than what I even paid for it. It was actually my first bad investment. The first deal I have ever lost money on. The spreadsheet doesn’t show the full carnage because that was just the purchase price and sold price. I had to pay closing costs on both those transactions, pay taxes and a big fine so I ended up losing a thousands more. I have learned a valuable lesson from this in which I will stay away from houses in really, really bad shape with foundation issues.
Other than that, I am sitting on the sidelines until I get my money back on my flip. I really can’t do anymore at this point as all my funds will be tied up with those two projects and I even have a HELOC ready for them also which I haven’t had to dip into yet.
Okay enough about that, lets jump into my net worth categories.
Assets: Explanations of each of my assets.
Well if it wasn’t for me selling a bunch of stocks and property #10 to get some of my money back on that, I would be in the negative for sure. This was a really bad quarter for me in my opinion but I am hopeful there will be a huge turn around once I am done with that flip.
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: +$1,525
Seeing a decent increase in my monthly HSA account. We haven’t had any surprise doctor visits and we are all in good health at the moment so lets hope that stays that way.
My HSA contributions are automatically deducted each paycheck from my dreaded W2 day job.
Company Stock Options: +$1,537
Believe it or not I actually sold some of these but not much and because the stock price went up so high, I am still in the green on this. I sold some because the stock hit new highs and I felt I had to cash in on some of it in case it never reaches these new highs again.
These are stock options from my day job. I am fully vested.
Stock Portfolio: -$11,829
I finally decided to sell most of my precious metal stocks. After 3 years of waiting for the economy to crash and hoping gold would sky-rocket, it just never happened. There was a week about a month ago when these stocks gained a lot of steam and I decided that was a good time to dump them and finally realize my profits. I ended up making about 100% profit from them which is awesome.
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 think 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. We live in downtown Indianapolis and we love living here. We are looking forward to the carriage house being completed and we will have an awesome roof deck overlooking the Indianapolis city skyline.
My current primary residence in Indianapolis.
Property # 2 (Austin, TX)
Rent paid on time and after a whole year of complaining that I will need to replace the roof, I finally replaced the roof. Cost me $7k to replace it and now this house has a new HVAC, water heater and a roof. It’s a great rental in a great neighborhood.
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 no repair requests surprisingly. 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. Because of this, my returns on this one have not been stellar but they are definitely still positive and they are paying my mortgage while the house appreciates so I will take that. 🙂 Got to love real estate investing!
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 (Indianapolis, IN)
This was the house I lived in when I first moved to Indianapolis. It was a rental property, then my primary residence and now back to a rental properly. It took me 1 week to find qualified tenants this past February and this property is now being rented for a nice $1200 per month and leased for 2 years. It’s a cash cow and I love this one a lot!
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 when we first came to Indy. 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 # 5 (Indianapolis, IN)
Rent paid on time. No repair requests made. Things are great with this one! This one is a cash cow for me also!
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 # 6 (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. We stay about 50% booked on it and still make anywhere from $300 to $500 more per month profit on it compared to if it was a normal rental property. At this point it’s really just a job for my wife doing the cleaning but a well paid cleaning job. 🙂 There are other benefits as well-being that the property does not get destroyed by tenants and we have an extra house to put family and friends in if they ever visit us.
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 # 7 (Indianapolis, IN)
Rent paid on time and no repair requests made. This one is a cash cow!
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 # 8 (Indianapolis, IN)
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 # 9 (Indianapolis, IN)
Still being fixed up even after almost 1 year since when I purchased it. I have had contractor issues with this one and now am on contractor #2 however we have been stuck dealing with permit issues with the city for months now. Hoping to have this cleared up soon so we can begin work on it again. This first full gut flip is not going well for me really but luckily I still think I can break even at worst which I would consider a win at this point.
This one is my first ever full gut flip project. I bought this house in May 2018 from a distressed seller in a popular neighborhood in Indianapolis. Purchased cash for $56k.
Property # 10 (Indianapolis, IN)
My first ever failed real estate investment. I ended up losing close to $10k on this after all was said and done. I learned hard lessons here and am thankful I did not lose more. This was the first time I ever lost money on any investment.
This was a run down house in a good neighborhood that I purchased for $40k with the original intention to wholesale it off to another investor and make a quick profit.
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 from when I used up cash to fund my carriage house up until slowly recovering that money back from stock sales, income and selling property #10. 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.
I have a good buddy whose balance sheet is long real estate similar to yours. I have seen his ups and downs, but in the end he made out really well. Stay the course and keep on fighting the good fight.
Impressive net worth
Thanks Church! Oh yeah I am sticking it out. Once I get through this flip I think I will be back on track and will have a lot of cash to play with. 🙂
Keep it up, man. Losing $10k on one out of ten+ deals is no big deal and those are odds that we should all hope for. Your risk vs reward is very much so in check.
True, it could have been much worse. But it still hurt me inside. And I have learned so much that it will be hard for me to lose money again unless I make a really boneheaded decision.
I just love your blog..one of the best ! I see you have a property in Austin ?! How is it renting out of your area..Im near Chicago and have 3 properties..but no more in Illinois..I was thinking of Florida but it is so far..
Hi Gayle, My Austin property has had the same tenant for 3 years now. They have been amazing tenants. The austin market is very hot and there is typically no issues finding qualified tenants. I thought about Florida but the hurricanes scare me away. Feels like a disaster just waiting to happen. Of course it depends on what part of FL.
Can you publish your carraige house plans. I’d like to build something similar.