This is my official June 2018 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 07/01/2018. 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: $723,874
Quick Summary and comments: +$18,0456
Knock on wood but my 2018 has been amazing so far! My net worth continues to soar each month, My wife and I have a precious new little baby that has changed our world and I feel sharper then ever when making decisions for us. I’m even getting up to 7 hours of sleep right now even with my little 2 month old baby. She is sleeping very well luckily.
This past month there was a big change in my net worth because I decided to sell one of my turnkey properties. It ended up being a really good decision for me because I made a ton of profit and the area the property is in is declining so I no longer wanted it as a rental. It was a win win for me.
Personal Life Update: My sweet, precious little baby is 2 months old and she is so freaking cute! She just recently started smiling, she’s eating like a little piglet and she is super healthy. I love my little girl so much!!
Real Estate Investing Update: More big changes in my Real Estate Investing. A 3rd month in a row actually with big changes. This past month I sold the 2nd turnkey property I had ever purchased and I made a nice chunk of change. I also am now full-blown into my rehab project which I let you know about in my last month’s net worth update. The rehab/flip is going pretty much as expected right now. It’s a full gut rehab down to the studs so it wont be ready for months. Outside of that, I am thinking about pulling out some equity on some of the paid off properties I have so I can start looking for another flip. I figure with the market being so hot in Indy I might as well take advantage while I can before this cycle ends. Plus after almost 2 years, I finally have all my ducks in a row and confidence on making some good money flipping.
Okay enough about that, lets jump into my net worth categories.
Assets: Explanations of each of my assets.
Big jump in my cash position from selling of my properties. Believe it or not this should actually be another $20k higher but I have already used up $20k so far to pay my contractor on that flip job. That cost doesn’t show up on this net worth post. And probably after this month, you will start seeing my cash position decline because I will be using that money to pour into 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: -$2,235
The bills have started pouring in you know with the whole baby being born thing. We are still expecting to pay close to another $4k 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: -$58
After months of growth we finally see a small price drop on these. I have been blown away by how much these are and feel super lucky to have received these from my company a long time ago.
These are stock options from my day job. I am fully vested.
Stock Portfolio: +$186
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. Since I purchased property #10 and will eventually move in to it. This current primary home will go back to being a rental property later this year. 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, it’s now worth a lot more than that which I very happy about. 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 new repair requests have been made. This time they are saying raccoons have taken over the attic. I’m sure this will be a costly fix for me which I am not looking forward to paying. 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 (Indianapolis, IN)
After my tenant moved out at the end of April. I spent the month of May fixing it up to sale retail on the MLS and as of early June, it was sold. I bought this puppy originally for $55k, put in about $15k overall and sold it for $105k. A very good profit considering the neighborhood it was in. (a C class neighborhood).
This was my 2nd turnkey rental property in Indianapolis. I purchased this for CASH FLOW purposes only back when I lived in Austin still. This was also the one where I had to fire my property manager.
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))
Tenant has paid the rent on time and submitted a repair request. Something about the dishwasher not working and the AC unit not blowing cold air. Will be costly I am sure. 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 # 7 (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 # 8 (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 # 9 (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 # 10 (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 # 11 (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 because that is when I sold my rental property and made a lot more money from the sale then what I had originally calculated that property being worth. 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.
Nice numbers as always!!!
Glad to hear all is well. You haven’t missed a beat in the real estate world, even with welcoming your baby girl into your life. This is great to hear. Don’t yell too loud about the sleep you don’t want to jinx yourself or piss off other new parents 🙂
Haha yeah I know, ive been knocking on wood. The baby has been really good to us, she doesnt cry often and when she does, we figure out real quick what she needs.
Looks like real estates are working well for you, even with a new baby girl, the real estate empire just keeps pumping out cash for you. Keep up the great work!
Indeed! Need to secure the empire for my baby girl! 🙂
This awesome! I love that you are sharing information about yourself! I personally am looking forward to being financially independent by 40. I am currently 30 and hold 8 properties.
I like the real estate empire you building ,enjoy the fun time with the Kid
Thanks so much!
Do you have any or know of any advice or resources for debt free real estate investing and someone just getting started?
I am at a point financially where I don’t need debt but want to get into real estate investing.
Hi Derrick! Not really man. The only thing I can think of would be to partner up with a “money guy” but then you would have to be experienced to do everything else. Only way I know how is build by getting mortgages, then eventually you have/make enough money to start buying cash which is pretty much exactly how I did it. Good luck!
Thanks. I phrased my comment poorly. I meant I want to start off buying properties free and clear without using any financing (bank, private etc) based on your experience does this change anything from a due diligence or what you look for perspective?
Ah I see, so youre saying youre ready to start buying cash? The only difference that makes really is just to use the cap rate when determining numbers, not cash on cash percentage and also that you should be able to get properties at at least little discount from being able to purchase like that with a fast closing. Other then that, everything is still pretty much the same. You would have to pay insurance and taxes on your own which is a additional to do item throughout the year.
Solid Numbers! Looks like you have a nice real estate empire going on. Keep it up!