This is my official July 2018 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 08/01/2018. 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: $767,865
Quick Summary and comments: +$43,991
What a busy month July was for me. We took our sweet little baby girl on her first road trip to Maryland. It was good until the end and she flipped out for the rest of the ride. The poor little baby was in the car seat for a long time! We stopped multiple times though to feed her and hold her. Anyhow, everything else is going according to plan and I saw a huge net worth increase for this month because as it turns out, I severely undervalued one of my properties again. This time my primary house that I live in. I received an actual appraisal on that house because I pulled out a HELOC on that one to help finance my flip. So as it be, I was off the current value by $70k!! Haha pretty bad but to be honest, I knew it was worth more but I was thinking more like 200k. I typically am very conservative on my numbers including my property values which is a good thing in my opinion. Seeing the actual value and how much more it was worth feels oh so sweet!
Personal Life Update: My sweet, little baby is almost 3 months old and she is so precious. Now I know the love that parents have for their children. It’s an entirely new level of love and it feels great!!
Real Estate Investing Update: The real estate investing is going great and I am currently expanding. I am knee-deep in two rehabs (one that I will be moving into, and one that I am flipping) and am expecting both of those to be completed sometime in September. I am also in the process of trying to pull out lines of credit on my properties that I own free and clear. It has been an obstacle trying to find a bank that will do this but I have found a few and am trying to get these closed now. With the extra funds from these new investment lines of credit, I plan on either doing/starting another flip or possibly build a brand new home on an empty lot that I have. It really just depends on if I can find a good fixer upper before I get my house design plans sorted out for the new build.
Okay enough about that, lets jump into my net worth categories.
Assets: Explanations of each of my assets.
As expected, my cash position is declining and will continue declining as I work on my flip. I am planning on using up all my cash for the flip and then dip into the HELOC I pulled out on my primary home. I will leave a good $20 to $30k though in the HELOC for emergency purposes. Once I sell my flip, I will pay off the HELOC, replenish all my cash plus more!! And then 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: -$2,321
The bills have started pouring in you know with the whole baby being born thing. We are still expecting to pay close to another $2k more I think which will then cover the family deductible. Not 100% on that though, my wife handles this piece.
My HSA contributions are automatically deducted each paycheck from my dreaded W2 day job.
Company Stock Options: +$1,639
Nice to see a little bump in these. I’m still amazed how much this stock has grown for me.
These are stock options from my day job. I am fully vested.
Stock Portfolio: –$941
My stock portfolio is built of precious metal mining stocks. It’s super volatile but prior to this month, it was actually went up again which was nice. 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. I officially got a HELOC on this property and discovered it was worth $70k more than I initially had it valued on my net worth sheet. Good stuff!! 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 no new repair requests have been made. 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))
I am officially selling this property. If you are interested in purchasing it, read that link. Tenant has paid the rent on time and submitted a repair request for this past month. This time I am having to completely replace the dishwasher. The tenant is hashing out all the remaining issue that were caused by the last tenant. Hopefully this is the last of it. This tenant signed for a 2 year lease back in March so I can’t complain.
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 am not expecting appreciation gains on this one.
Property # 6 (Indianapolis, IN)
Rent paid on time and no repair requests made. This tenant is in their 3 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 now 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)
This is my latest 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.
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. 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
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.
Always so impressive! It’s got to be a great feeling to have your properties valued higher than you thought. What a wonderful monthly increase – awesome work!!!
Road trip, rehabs, real estate appreciation! Looks like a great July! Glad to hear all is well. We enjoyed an extended vacation on the West Coast and none of my three kids cried. 🙂
Indeed a very good July! Thanks Brian! Im glad to hear your vacation went well also. We will be taking the baby on her first plane ride in a few weeks. We have a wedding in Washington state so that should be interesting. Wish me luck!!
Killin it Alex!
Awesome to always see your progress. And it’s been real fun watching your progress!
Thanks Tyler! Im happy to see you have a blog documenting your journey also. Good stuff!
Great update, Alex! I am so excited for your new flip project, keep us posted.
I am also experiencing same difficulty as you mentioned in your previous updates regarding the Kansas City PM. My rental has been vacant for weeks and I have been inquiring, but haven’t heard a word about a walk through inspection and when they will get it ready for leasing.
Congrats on the increasing net worth! You mentioned that you’re in the process of opening HELOC’s on properties you own free and clear. I hope you blog about what you find. We own 16 properties, and it’s been hard for us to get HELOC’s once you get over 10 rentals owned. I’ve looked into commercial lines (too expensive and not flexible enough for what we need) and also a line drawn against our LLC but as the LLC is for our real estate , it still comes back to a traditional HELOC against the properties, which gets us dinged on the over-10 issue. It is a work in progress!
Thanks so much. It’s amazing seeing how much my net worth has gone up lately because of real estate appreciation! So I was able to pull a HELOC on my primary residence and and I just pulled another one on two of my rental properties combined under my LLC. I was able to find a bank to do this here in Indy. Send me an email and I will give you the info. Im not sure if they can help you out but its worth talking to them. Not sure about the 10 mortgage rule on it.