This is my official July2016 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 07/31/2016. 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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Quick Summary and comments: +$30,648
Holy cow this past month has been one of the busiest, most stressful and yet exciting months I have had well since the wedding which was only just a few months ago. 😐 That just goes to show you how crazy my life has been this year. As I am writing this, I AM OFFICIALLY LIVING IN INDIANAPOLIS! I am now living in one of the rentals I owned in Indy and am trying to get settled into my new life. It has been a wild ride to get to this point and it’s already paying off as you can see my net worth jumped up $30k this month which is just unbelievably ridiculous to me. For those of you who never read my post about why I moved to Indianapolis, it was basically to help me reach financial freedom faster.
There was a ton of stuff in motion this past month which helped me increase my net worth so much and make some big changes in my overall statement. My assets for example dropped over $80k while my liabilities went down over $111k. It truly is amazing and be sure to read the captions below on each asset to get the full picture of how this happened.
I still can’t believe that I left Austin for Indy and I am not used to living in the midwest yet but I am super excited about starting my hunt for my next rental property. I’m hoping within the next few weeks I can check a few out. I’ll be sure to keep you updated if I make any purchases. Should be very interesting!!
Okay so for all you wondering about my amazon business, here is the latest update.
Amazon FBA Update –My shipment is finally on the way to the united states via a sea cargo freight ship. It should be here any day now, I am just waiting on final confirmation email from my shipping contact. With that being said, unless any unforeseen events happen, I should be having my product for sale on amazon in a week or two. I’m getting excited about but this also means I need to put in a bunch of effort to make sure I get this thing listed properly. I will probably be writing more specific individual posts about all this once I have the product listed so I can break down the details of how I did every step which should be very helpful to the readers. I just need to make sure I have a profitable product first though. 🙂
Okay enough about my personal life. Now let’s get to the breakdown of each asset.
Assets: Explanations of each of my assets.
Cash: +$128,902
Uh yesI now have $176k in cash right now. I have never in my life had this kind of money before and it just feels weird. So how did I get so much cash? Well if you read my last net worth post and read my line item for Property #1 in the spreadsheet above then you will see that I sold one of my houses. I sold my Austin Primary house via FSBO for $255k!! I originally had it listed on my net worth as being worth $250k so I was very happy to see that I sold it for more than what I thought it was worth and not to mention, NO REALTOR FEES! I sold this bad boy for sale by owner and my buyer did not have a realtor either. I saved about $14k cash because of this. Stay tuned in the near future for a post about how I did this including all the steps.
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: +$92
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: +$3,880
Okay I have been getting super lucky with these company stocks, they just keep going up and up lately. I am literally really close to selling some of these. They are right on the verge of crossing the price mark that I told myself I would sell. I’m still in a black out period though so I wouldn’t be able to sell any of these I think for another month or so. Once I’m able to make a transaction, I very well could be dumping some of these for more cash. If I do that, I will use that money to help fund some more rental property rehabs that I will be doing here in my new Indy life.
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: +$2,570
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 right now its the highest I have seen it. Its great!! To think, I bought all these for $6k and now its worth over $18k in just 7 months. Pretty awesome!! It is making my mini stock portfoliolook to have amazing returns. Satisfied!
401K: +$262
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 was my primary house just a few days ago in Austin, TX. I have now cashed out on this bad boy and will be using my $137k profit to fix up my new primary in Indy and the rest to buy more rental properties. I originally bought this house for $130k almost 3 years ago and put in about 20k fixing it up. I just sold it via FSBO and profited over $130,000 cash. No taxes either by the way. 🙂 SuperSatisfied! Here are more details onwhen I originally bought this one.
Property # 2
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. The new tenants I personally placed in here about 4 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 at one point. I expect gradual appreciation from this property because it is in the suburbs Austin which has been growing tremendously. Love me some HOT markets! 150K is about what its worth now based on MLS comparisons. Satisfied!
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Property # 3
This rental in Indy is doing well. The new tenants have been in there for 2 months now and they have been paying on time. The only problem so far is that they were not satisfied with some of the stuff in the house and put in a request for some unexpected items. For example, they wanted a dehumidfier put in the basem*nt and they wanted new carpet put in one of the roomsbecause they said it smelled like cat urine. Well the last tenants were not supposed to have any animals so im guessing they snuck one in. I ended up paying for these unexpected repairs and it cost me about $700. The new family is now happy though which I am pleased about and I think they will be good tenants for the next year. Hopefully they will renew the lease a year from now.
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
HUGE NEWS!! This is the rental I had that I am now living in and am typing this post out of right now! It’s in an up and coming neighborhood near downtown indy that is in the process of gentrifying. The property values are already going up and there are some houses going for $200k which is unprecedented for this area. Well as you can tell that is why I moved into this house because it has some killer potential and not to mention there has already been appreciation on this house. I am just finishing up a $25k upgrade to the house which has now valued this house at least $100k!! My realtor friend in Indy actually thinks its worth over $120k but I am just going to keep it conservative at $100k for now. I am excited to be living here and will keep you posted with how it goes.
This wasmy 3rd turnkey rental property in Indianapolis. I purchased it in early June 2015 and I absolutely love this house. I ended up moving into this house when I moved to Indy and am living in it to this day. My plan however is to turn this back into a rental unless I see some huge appreciation gains on it in which I will consider selling. But of course this is way down the road, like 5 or 10 years from now. 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.
Credit Card
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!
Car Loan
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
Check out my HUGE jump in the graph from this past week. Its super cool!! 🙂 I really do love this chart, it looks great and its nice and big. As long as it keeps going up, im happy! 😉
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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.
Check out these other posts:
- June 2016 Net Worth Update
- Net Worth First Post – 05/21/2015 @ $310,683
- May 2016 Net Worth Update
- July 2015 Net Worth Update (+ $11,374)
- February 2016 Net Worth Update
- April 2016 Net Worth Tracker
