This is my official June 2016 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 06/30/2016. Explanations and quick summary below chart. If you would like to see my previous months net worth posts, please visit my Net Worth Tracker.
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TOTAL NET WORTH: $394,240
Quick Summary and comments: +$9,084
Wow 2016 is truly proving to be an epic year of change for me. It has been a roller coaster and my life is literally about to do a 180 degree turn. If you have not read my last post, I am moving to Indianapolis where I will be cutting my mortgage in half as well as be able to acquire more rental properties at better deals and at a faster pace. All for the sole purpose of fast tracking my financial freedom journey. My primary house here in Austin is officially under contract and I am set to close at the end of July. So I should be living in Indy by the end of July if all goes well. Make sure to scroll down and read my note on property #1 to see some really cool details about how I am selling this house. Oh and I am almost at the $400k mark for my net worth which is pretty freaking cool!
With selling the house, preparing to move and my day job being super busy I find myself having very little time on the blog lately which pains me. June was the first month that I did not post at least 1 post per week. I will try my hardest to pick this up but I don’t things will cool down until a month or two after moving to Indianapolis. We’ll see what happens.
Overall I am very satisfied with what I am seeing with my net worth. Despite having to cough up $12k on my amazon business which you will see below, I still came out on top mainly because my stock continues to rise which is super awesome plus I sold my motorcycle and got $4k from it. It was a sad day to see my bike go but it was time to sell it.
Here is a quick note about the amazon business for you all of you interested.
Amazon FBA Update – I finally received word from the manufacturer a few weeks ago that the final order of 1000 units was made and ready to go. I hired a 3rd party inspector to physically go to the manufacturing site in China and do a random inspection on the units. I am pleased to say that the inspection came out good and I have made the final $12k payment for the goods. I am now currently working with the overseas freight carrier on bringing the goods to the US. It has literally been like 5 months since I started this and I am still about a month away before the items will be listed on amazon. It will take over 20 days just to get the items to the united states. I will probably have another update about this or just write a whole post about it in a month or so. Looking forward to this and really need to at least break even on this. If not, this will go down as a HUGE failure but to be honest, I am optimistic and still think I will make some decent profit.
Okay enough about my personal life. Now let’s get to the breakdown of each asset.
Assets: Explanations of each of my assets.
Cash went down again for the 2nd month in a row but this time it is because of Amazon expenses I had. If it was not for that $12k payment I did I would be way up this month. Considering my net worth still grew and I plan on fully recuperating that amazon cash when I start selling my product I am completely pleased with this cash drop.
My cash as noted above in the spreadsheet consists of two different checking accounts. My normal checking account and my REI (Real Estate Investing) checking account. Satisfied!
HSA account: +$139
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: +$5,696
These options seem to be sky rocketing and last week it almost hit my sell mark. Unfortunately I am now in a black out period so can not buy or sell any of these. Once the black out period is over, If the stock hits my sell mark I will probably dump about half of them. I think it will be a good idea because I don’t foresee the stock price going too much higher than my sell mark and I would love to cash out while on top. At least some of it. If I do sell, I will probably use that money to buy a wholesale property in Indianapolis so that I can rehab it and rent it out.
These are stock options from my day job. I am fully vested. I may 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: +$4,091
Ahh it feels amazing to have jumped on the gold rush train in December. It has literally gone nowhere but up since I bought it and with all the crazy stuff happening in the markets (brexit, etc..) it is only making my mini stock portfolio greater. Satisfied!
Crappy 401k! Ugh!
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 primary residence in Austin which I have always listed on my net worth as being valued at $250k. Well this also happens to be the house I am cashing out on and will be using the money I make from it to buy 2 rental properties cash in Indianapolis when I move there. I am selling this house for sale by owner and will keep about an extra $12k in my pocket by not using realtors. I originally bought this house for $130k almost 3 years ago and put in about 20k fixing it up. This house is currently under contract for $255k and I will be making over $100k profit from selling this house which I am very pleased about. Satisfied! Here are more details on this future investment property.
Property # 2
This is the property I self manage in Austin. The new tenants I personally placed in here about 3 months ago have been nothing but stellar. 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.
This is my first rental property. It used to be my primary residence. I expect gradual appreciation from this property as well because it is in the suburbs of this HOT market I live in. Love me some HOT markets! 150K is about what its worth now based on MLS comparisons. Satisfied!
Property # 3
Last month I mentioned the tenants were moving out and they did. It cost me about $700 to make this house rent ready again and new tenants were approved almost immediately. The house is already being rented out by the new tenants and it was vacant for about 3 weeks. Overall I am pleased with how this turnover went and would expect all my turnovers to be similar to this if not worse.
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
This is the property in which I fired my property manager from. At this point everything is still fine. 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
This property was also going vacant in June and my wife and I decided that this is the house we want to move into in Indianapolis. So as of now, this house is no longer a rental property and will be my new primary residence. This was my favorite rental out of all the ones I have because of the prime location in Indy, the size of the house and the huge yard that it came with. When I bought the house it was rehabbed and the house is still in great condition however I am putting in an extra $25k or so into this house right now to really boost its value as well as prepare it for it to be my new primary. I am very excited about this house and also have huge news to reveal about this house next month. But to give you an idea on what it is, lets just say this house is worth a lot more money now then when I bought it. Ill share the details on it next month but I got really lucky with this house.
This is my 3rd turnkey rental property in Indianapolis. I purchased it in early June 2015 and I absolutely love this house. I do not expect much appreciation on this property. I purchased this for CASH FLOW purposes only. Satisfied!
Property # 7
Rent paid on time, no issues, no repairs. This is my most recent turnkey rental property located in the Kansas City area. I just 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. As long as it keeps going up, im happy! 😉
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.
Congrats on considerably increasing your net worth despite the drop in cash. You make me want to share my net worth on my blog. But I don’t have as any accounts or assets as you, so it probably wouldn’t be that interesting. 🙂
Thanks Aliyyah! Ha you should definitely consider sharing. I do mostly to keep track of it for myself and it helps motivate me to grow it. I wouldnt worry so much about not having enough assets. You will eventually get to where you want to be and that is what is most important.
Congrats on your progress! Can’t wait to hear all the details of House 6 soon!
Thanks Pia!! I appreciate it. Im excited to share the news also on property #6 in next month’s net worth update. 🙂
Congrats on your progress! You were the first to comment on my blog and I’m happy to see yours is doing so well.
I fell off the wagon, but I’m working to get myself back on it.
Cool! Glad to be the first comment on your blog. Thank you for stopping by. Ill be pulling for you to get back on the wagon. 😉
Congrats on another stellar month Alex!
Very exciting to see you move into one of your turnkeys. Indy is an attractive city for younger families. Looking forward to hearing about all your new happenings (so many of them!).
Thanks Mike. Yeah its kind of crazy that I am moving into one of them but its a very unique one. That is the only one I would actually even consider moving into. Yeah it seems there is always something big and crazy happening in my life lately. Not sure if thats a good thing or not.
Solid growth on the month! I look forward to hearing more about the Amazon FBA deal. It’s great taking risks like this, even if they don’t end up turning a profit it’s a great learning experience. Thanks for the monthly update.
OH man this amazon thing is stressful. I do agree about taking risks and I seem to do them more then not but like you said, at the end of the day at least I will build some experience from it.
So close to $400k! Glad to hear the Amazon inspection went well, hopefully when you start selling in the next couple months it will really bump things up.
I’m going to start doing ‘portfolio value’ updates on my rental properties. I don’t really want to share all the other accounts in my life, but will reveal some!
Oh yeah if the amazon thing takes off I should see some nice profit from it. Ill keep my fingers crossed. I think its a great idea for you to do a portfolio value update. I would read it for sure.
The gold rush is real! Glad you got on the train I sadly missed it but I have enough income stocks that my portfolio is not taking a hit. Goodluck breaking through that 400k barrier, you will be a half a millionaire in not time!
Too bad to hear you missed it. It bugs me everyday that I didnt put more money into it when I bought but at least I got a little bit in. Thanks man! I would love to be a half a millionaire!!
Nice work, Alex. Everything is heading in the right direction. Love following these net worth progress updates.
Keep it up!
Nice progress. I hope your move to Indy is smooth. I’m sure you’ll find even more good deals once you are in the city and get a feel for it.
thanks ZJ! It does seem like the deals are getting harder and harder to find but once im there im confident ill be able to pick up some decent wholesale deals.
That is a great detailed report and you had an amazing month! We are all about getting money out of retirement accounts and using them on rental properties too. As for your blog, the quality is key and you have a lot on your plate with getting ready to move! Great job – love following the progress!
Have you looked into Self Directed retirement accounts? If you have the investing knowledge required for rental properties and choosing to pull money out of retirement accounts for real estate investing, you are potentially leaving a lot of money on the table by not considering self directed accounts (401k and IRA).
Hi Vicki! I was very pleased with June for sure. Im hoping it continues that way. 🙂
Have you looked into a self directed 401k? It’s an investment vehicle where you can get the returns of renta properties under the tax advantages of a 401k. http://www.accuplan.net/self-directed-401k.htm
I have not looked into that but after reading that link I am very intrigued by it. I like how you can defer the taxes on selling real estate sort of like a 1031. That is awesome. Thanks for the info Chris.
Nice increase! My tenant is once again late on rent and I’m going to enforce the $250/day late penalty finally. He’s been late 5X before, but always paid by the 10th (supposed to pay by the 4th).
What’s the point of a lease if it is not followed right?
Oh man if you enforce the $250 penalty im sure your tenant will clean up their act really fast. Sometimes it feels bad making decisions like that but at the end of the day you just have to treat it like a business. You could be nice and give him a warning and tell them that starting next month you will enforce the contract for the penalty. That would probably work also.
Wow, that’s a hefty late fee. What rent are you charging there? $250 will surely teach him to not be late. My late fees are $30 when past the 5th and then $5/day, but my rentals are in the $1200 range.
Great progress and it looks like your decision to skip the 401k is working out well for you
Honestly if my company matched my 401k i would at least be contributing what they match for the free money. But yes so far that decision is working out in my favor plus I dont foresee 401ks doing well in the coming years. I just dont see how the markets can sustain such growth.
Congrats on a stellar month! I am excited to hear about the Amazon FBA process and outcome!
Good progress A.
Don’t snooze on that HSA. If done properly, you can purchase a rental property via the self-directed HSA route and have that grow on it’s own. Imagine not having to worry about medical expenses since you have monthly passive stream(s) there too.
Oh trust me if I was doing a self directed HSA I would be doing that. I did look into that but im doing a company HSA so it works differently.
Nice progress Alex! That’s so cool that one of your turnkeys will end up being your home. We appreciate all of the info and look forward to an update on the Amazon project.
good luck with the Amazon deal. Even if it fails, the learning opportunity is extremely valuable. You are now able to understand all the nuances of what it takes to get something manufactured from China and how to go about making it happen. Totally worth it in my opinion. Great update, keep killing it and you will be set for life in short order. All the best !
Thanks Brian! Really appreciate it. You do make a valid point for sure. Worst case I will know a lot more about selling on amazon and having bulk goods manufactured from china.
Ill be sure to keep everyone posted on the progress.
Wow, good job with getting paid on your rentals:) Solid investments. How do you collect their rents? in person or online? just curious because I’d like to learn more about this business.
Hey Aaron! Thanks! I love getting paid on my rentals!! 🙂 All my properties but one have property managers so they collect the rent via online payments then ACH the money to my account. The one rental I self manage pays me online via chase quickpay each month. Its great!
I still don’t understand FBA Amazon – – but love how many people are so successful with it! I can’t wait to read more posts about your journey on this. Really excited for all the awesome changes happening for you!!
Thanks Kristin. Yeah there is a lot going on lately with me. Its crazy! Makes the time go fast though.
Always nice to see personal net worth rise on a monthly basis. Of course, these figures can be very fickle when stocks are factored in simply because of their volatility. I have to say you have one of the largest rental portfolios I have seen online. Congrats on making it work for you. Looks like your properties are pulling their weight for the most part. Thanks for sharing and don’t forget about dividend stocks too.
Hey DivHut!! Thanks bud! I agree that the my monthly net worth posts are volatile but mainly in a good way because of the stocks but I still like to keep track of them every month to see which way its going. At some point, ill be selling stock when I think im at the top of the peak which I believe I almost am with my company stock options.
Wow you are absolutely killing it. Best of luck on the new business venture, can’t wait to hear the juicy details on it on a future post.
Thanks FS! Dont worry I will definitely have a juicy post written up on the amazon stuff once I make some good headway.
Wow congrats on the amazing progress here! I love how increased the asset side and decreased the liability side as well. I didn’t haven’t had the chance to read your article about moving yet, but good for your for moving to decrease your mortgage and get some more properties under your belt. Also, looks like you rode the increase in the stock market very well this month!
Keep up the great work!
Bert, One of the Dividend Diplomats
Thanks DD! Increasing the asset side while decreasing the liabilities is what I love for!! 🙂
Congrats on the progress! $9k net worth improvement is more than many make in salary over a couple of months. Keep it up!
Hey Lee!! Thanks bud! $9k is a lot and almost tops one of my record high months. Im very grateful!
I’m really interested to see how your Amazon project does. I just finished up a post that is scheduled next week where I interviewed someone who is a successful Amazon FBA seller. It would be interesting to hear other perspectives. Hope your move goes smoothly and off without a hitch!
Oh yeah trust me I am really interested in seeing how my amazon project turns out also!! 🙂 Ill keep you posted and hopefully ill have some good info on it next month. Right now I am waiting on the shipment to get approved for a sea freight delivery date.
This is so cool. This is the first net worth update I read from you and I’m blown away. So much going and with that your net worth continues to grow steadily. Looking forward to keeping up with future updates!
Hey DE!! Oh man my life is crazy it seems. Its a roller coaster for sure and so far it has been great. Im looking forward to later this year to slow down a bit and have some time to relax.
Congrats on the move buddy, seems like we’ve both been busy 😉 haha.. All the best with your move & good on you for doing it!
Hope all goes well if you haven’t already moved & congrats on your net worth as well :)!