This is my official February 2018 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 03/01/2018. 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: $662,309
Quick Summary and comments: +$11,882
Wow I can’t believe its March already. Time is flying by and it’s hard to believe I will be a father in just a few months. That is pretty much all I am thinking about these days. My February net worth update saw a nice increase mainly because of my cash position. I finally went a month without having weird or unusual expenses which was very nice. Nothing crazy to report here other than all is on track and headed in the right direction.
Personal Life Update: My wife is now 7 months pregnant and we are having our little girl in a just a few months. I am actually in Austin right now for my day job but headed back to Indy by the time you read this. I’ve been in Austin for a whole week and I am ready to get back to normal life in Indy.
Real Estate Investing Update: I still have that $50k tied up in hard money lending, still collecting the interest payments on that as well so I can’t complain. As you may have read a couple of posts ago, I converted one of my rental properties into an AirBnB. It has now been just over a month since we first listed it and so far it’s going very well. We have not had any crazy issues and have been steadily booked since we started it. The month of February pulled in $1,304 in earnings. That is about $350 more than what the normal rent price would be on that house. I still haven’t calculated the utility expenses paid so that will knock it down a few hundred bucks I am sure.
Overall, not too shabby for our first month on airbnb. We have increased the rates a bit for March so I will be expecting even better numbers this coming month. Stay alert for an airbnb update.
Okay enough about that, lets jump into my net worth categories.
Assets: Explanations of each of my assets.
Fortunately, we didn’t have to spend money on weird or unusual expenses this past month and with the interest I am earning on my hard money loan plus a nice little bonus from my job, I saw a nice increase in my cash position.
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: -$232
Saw a decrease here due to having to pay for some doctor appointment stuff for my wife’s pregnancy. These were expected and I will not be surprised if this keeps going down each month now that we are in the final stages of having our first baby.
My HSA contributions are minimal right now but because of the baby coming, I may increase these contributions now. Will speak to my wife to decide the best course of action.
Company Stock Options: +$1,926
Saw another price increase which I will not complain about. Since I am not hard-core pressed for cash right now though I will just let these stocks sit there. Hopefully it will continue to grow.
These are stock options from my day job. I am fully vested.
Stock Portfolio: -$954
My stock portfolio is built of precious metal mining stocks. It’s super volatile but prior to this month, it was actually going up for a few months which was nice. Unfortunately this is just the nature of the game for this industry. 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.
My primary residence in Indianapolis. This was originally a turnkey property I bought back when I lived in Austin. I bought this house for $67k almost 2 years ago. Spent an additional $30k in renovations when I moved into this house. So all in for $100k, now worth about $160k. 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. Here are more details on when I originally bought this one as a rental property.
Property # 2 (Austin, TX)
These tenants have been in this rental for 2 years already and they just told me they want another 2 years. It’s a beautiful day!! Rent paid on time, no repairs made. 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, no repair requests made. By far, these tenants have submitted the most repair requests out of any other of my rentals. They are really picky.
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 tenant decided to pay for me for 8 solid months back in July. So rent payments are not an issue until the lease is up which is really soon. We (property manager) are in the process of finding out if they will sign a new lease. No repair requests were made. This property was the one that I fired my property manager from originally when I first bought it as a turnkey rental properly.
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.
Property # 5 (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 # 6 (Independence, MO (KC))
After sitting vacant for a few months, the new tenant finally moved in. And on top of that, they signed a 2 year lease. So this one should go back to becoming a cash cow soon. Unfortunately, I have been having communication issues with the property manager on this one lately which is very concerning for me. 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.
Property # 7 (Indianapolis, IN)
Rent paid on time and zero repair requests. 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 # 8 (Indianapolis, IN)
This property is now a full time airbnb vacation rental property. 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.
I bought this house from a wholesaler here in Indy for $65k in a very popular Indy neighborhood (Bates Hendricks) back in late October 2016. I put in about $20k getting it rent ready. And an additional $10k to make it airbnb ready.
Property # 9 (Indianapolis, IN)
This is my newest rental and so far I have received all the rent payments on time. No repair requests made. I am not expecting any repairs anytime soon as I fully rehabbed this house.
I bought this home as a foreclosure off the MLS. Paid in cash, fixed it up and rented it out. Check here for all the numbers and details of this property.
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 HUGE increase at the end because that is when I updated all my real estate values. It’s beautiful!! I love this chart though. 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.
Looks like a solid month. Good to have some smooth sailing heading into baby arriving, because she and the wife will take top priority!
Thanks Brian! Oh the baby and the wife have pretty much already taken top priority. Its all I can think about lately.
Wow, a lot of real estate there, must be hard to keep track of it all. Impressed how it’s weathering you from the stock market wobbles, looks like a good balance.
And a new baby, how exciting for you, wishing you all the best :).
Thanks!! Honestly its not really that hard to keep track of it. There isnt much to it. I keep spreadsheets with all the properties/insurance info/property management info to make it easier for me and easy for my wife to find it if she ever needs to look at it.
I have always preferred real estate over stocks but thats just my preference. 🙂 Hasn’t done me wrong yet!
Awesome. If you want to switch property managers in KCMO, I’ve had a pretty good experience so far with mine…though they’ve been a bit lacking in communication about one small fee…hopefully I will get that cleared up.
Can you update how the Airbnb property is doing? I’m planning to do that in Upstate NY but I’d need to hire a property manager. I’m assuming you guys will have to hire cleaners since the baby is coming soon right? Would love to hear how that property is going!
Thanks Andrew. Ill let you know if I ever need a new PM in KC. The airbnb is actually going great so far. Our first month (February) was a success. We made over $1300 in bookings and didn’t have any crazy guest issues. We increased the rates a bit for March so we should do even better this month. I am planning on writing a whole post detailing out all the numbers after the first 2 months.
The airbnb is in the same neighborhood we live in, and my wife and I both work from home, meaning that its very easy for us to head to the airbnb and clean it for turnovers. Our plan is to keep cleaning it ourselves (or by myself) once the baby comes. If that proves to be a problem which I doubt, ill have to hire a cleaner I guess.
New to your blog but very interested in your rental investments.
I currently have three rentals and I am looking to increase my portfolio (on days where I actually still want to be a landlord!)
Congrats on the soon to be new addition:)
Haha yeah being a landlord cam be stressful at times. It’s just a matter of shifting your mindset a bit and at the end of the day that cash flow always prevails!!
The spread between rent and Airbnb income is pretty solid, I wouldn’t have guessed it’d be that high (percentage-wise) but it makes sense… more costs associated with Airbnb (in theory, since you’d have to clean way more often).