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: -$3,126
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!
401K: –$8
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.
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
I really do love this chart, it looks great and its nice and big. As long as it keeps going up, im happy! <img src="https://s.w.org/images/core/emoji/72x72/1f609.png" alt="