March 2015 Net Worth Update

by FI Fighter on April 2, 2015

in Net Worth

For this month, I’m going to try and mix up the Net Worth report a little, and hopefully be able to provide readers a more organized and accurate representation of my current financial statement. In general, I don’t place much value in the Net Worth report because as I’ve learned through the years, when you own a lot of real estate, the valuations are extremely subjective. Even amongst professional appraisers, the value of any home can fluctuate greatly…

Previously, I was relying on Zillow’s Zestimate to determine the value of my properties, but as we all know, these valuations are all over the place as well. Overall, I think Zillow is pretty accurate with my Bay Area rentals, but very much off point with my out-of-state properties…

Also, I was previously relying on Mint to organize all my accounts… Mint is a very useful tool, but also very limited when it comes to rearranging manually inputted loans. For the longest time, I could never figure out how to place Rental Property #5’s loan into the ‘Loans’ tab… You know, the most logical place to put it. Instead, Mint would always force the manually inputted loan to appear in the ‘Properties’ tab, which made no sense…

So, starting this month, I’m going to rely on myself to not only valuate my properties, but also to organize all the financial data.

Any feedback from readers will be greatly appreciated!

Net Worth

Here is where my Net Worth stands at the conclusion of March:


Here is a breakdown of assets:


Here is a breakdown of debts:


Cash and Credit Cards

I currently have $10,485.92 stashed away in my checking account ($13,377.41 previously). Cash dipped this month as I spent a bit of money on Rental Property SH #3 renovations. The good news is that the materials have all been purchased and the contractor team paid! Hopefully, we can secure a quality tenant soon and start collecting some desperately needed rent checks.

Starting next month, it will be a RELIEF to no longer have to be swiping my credit card at Home Depot and Lowe’s seemingly every other day…

I owe $223.78 in credit card debt.

Up to this point, I haven’t kept tabs on my Emergency Fund, but for completeness sake, let’s go ahead and include it this month. I have $35,000 hidden away for a rainy day.

Total: $45,262.14


I owe the following loans:

Rental Property #1: $325,758.62
Rental Property #2: $329,109.34
Rental Property #3: $114,732.98
Rental Property #5: $123,811.08

Total: $893,412.02

Both Rental Property #1 and Rental Property #2 debts reflect cash out refinanced loans. Rental Property #4 is owned outright and there is no loan associated with it.

Side Hustle Loans

Rental Property #SH 1 (25%): $388,506.38 ($97,126.60) 
Rental Property #SH 2 (25%): $387,191.13 ($96,797.78) 
Rental Property #SH 3 (50%): $406,000.00 ($203,000.00) 

Total: $1,181,697.51 ($396,924.38) 

My portion of the Side Hustle loans are accounted for above. My partnership stake in each property is shown in the ( ).


I currently own stocks in my taxable brokerage account. My other investments are in 401k and Roth IRA.

Current 401k: $4,787.93
401k: $128,858.73
Roth IRA: $60,440.33
Brokerage: $95,672.26

Total: $289,759.25

Investments are mostly flat this month, as the markets have held stable.


Here are the values of each property, based on my own estimate:

Rental Property #1: $460,000
Rental Property #2: $450,000
Rental Property #3: $157,500
Rental Property #4: $95,000
Rental Property #5: $180,000

Total: $1,342,500.00

This month, a similar comp to Rental Property #1 hit the market at $475,000. Rental Property #2 recently appraised for $440,000, prior to buying season ramping up in the Bay Area. Rental Property #3-5 valuations are the purchase price I paid.

Side Hustle Properties

Rental Property Side Hustle #1 (25%): $520,000 ($130,000)
Rental Property Side Hustle #2 (25%): $560,000 ($140,000)
Rental Property Side Hustle #3 (50%): $490,000 ($245,000)

Total: $1,570,000.00 ($515,000.00)

My portion of the Side Hustle equity is accounted for above. My partnership stake in each property is shown in the ( ).


The total value of all assets now checks in at $2,192,745.17, an increase from last month ($1,669,192.06). I also owe $1,290,560.

Net Worth saw a large spike up this month, due to the new form of accounting that I’m using. The intent, though, is not to artificially inflate the numbers, but rather to provide readers with what I feel is a more accurate representation of my financial situation. With property valuations, I tried to be as objective as possible.

So, whether you accept this new style as GAAP or non-GAAP, please let me know! I sincerely do hope that this new format is easier to follow and a better approach than to what I was previously using.


Fight On!


2015 Net Worth Summary:

March 2015: $902,184.99

February 2015: $771,405.52

January 2015: $785,811.26


2014 Net Worth Summary:

December 2014: $781,996.44

November 2014: $763,680.73

October 2014: $716,124.37

September 2014: $702,618.90

August 2014: $724,476.61

July 2014: $718,780.24

June 2014: $693,514.01

May 2014: $665,115.97

April 2014: $633,456.43

March 2014: $598,435.05

February 2014: $557,154.47

January 2014: $586,137.08


2013 Net Worth Summary:

December 2013: $569,022.97

November 2013: $542,725.46

October 2013: $527,010.49

September 2013: $444,860.79

{ 21 comments… read them below or add one }

1 M from There's ValueNo Gravatar April 2, 2015 at 9:51 am

I don’t care if it’s just from a new accounting method, it just looks great to see huge spikes in your net worth doesn’t it?!



2 FI FighterNo Gravatar April 3, 2015 at 1:12 pm


Definitely, it’s always good to see progress in our investing.

Roll tide! 😉


3 Adam @ AdamChudy.comNo Gravatar April 2, 2015 at 10:12 am

Huge numbers. Congrats.


4 FI FighterNo Gravatar April 3, 2015 at 1:13 pm


Thanks! Just trying to get better, day by day.

All the best!


5 Dividend HustlerNo Gravatar April 2, 2015 at 11:24 am

Awesome FIF. It’s great to see your collection of assets. It’s very motivating and rewarding to do these monthly statements. Keep hustling and enjoy the awesome journey bud. Take care.


6 Dividend Growth InvestorNo Gravatar April 3, 2015 at 6:40 am

I agree with DH,

The way you have it organized it more logical, it flows easily and it is very easy to see your total picture.

And I can say you have done really well in building up your net worth. But honestly, if I had over $1M in debt, I would have anxiety every day. Which is why I probably stick to stocks and avoid debt.

Either way, good luck in your investment journey. I wish you to be cash flow positive every month for the next 30 years


7 FI FighterNo Gravatar April 3, 2015 at 1:16 pm


Thanks for the feedback; I’m glad the new layout is more logical and easier to follow.

Yes, having that much debt attached to my name does create some stress, I won’t deny that. The only way I know how to mitigate risks is to stash more cash. I participated greatly in this latest bull run, but my time as an investor may be just about done…

There’s more risk than reward, at this point, for me. If I do invest, it will most likely be in stable dividend growth companies that I’m most certain will still be solvent many years down the road.

All the best!


8 FI FighterNo Gravatar April 3, 2015 at 1:13 pm


Thanks! The journey has been quite the ride so far, and I’m hopeful all this work will pay off in the fture. I agree, these monthly progress reports are motivating to keep up the good fight.

Fight on!


9 TawcanNo Gravatar April 2, 2015 at 11:37 am

Looks great and it’s very impressive to see all your assets listed. You’re definitely building a small empire for yourself. Congrats on having an excellent month.


10 FI FighterNo Gravatar April 3, 2015 at 1:17 pm


Thanks! Things should get better, I hope, now that SH #3 is complete and just needs to be rented out.



11 markNo Gravatar April 2, 2015 at 11:50 am

Just out of curiosity, how are you funding/financing all of your side hustle deals? If you co signed the mortgage and the partnership agreement states you only are responsible for 25% (for example), the bank still sees you responsible for all of it. They will go after everyone regardless of your partnership agreement. If that is the case you may want to factor in worse case scenario and consider all of the debt until the sky clears and it is paid off.

Perhaps you took out personal loans and all put in your share (that is what my business partner and I do). That way if he defaults they go after his personal house and not mine.

Anyways please let us know.


12 FI FighterNo Gravatar April 3, 2015 at 1:19 pm


Definitely, there are many ways to structure a partnership. Whether it’s joint names on a loan, or LLC, I think the most important thing is choosing the right partners. In my case, I pick them very carefully, and for these deals, I’m involved with individuals who I trust implicitly. Regardless of structure, we are all in this together and we won’t leave any one person out to dry…

Over time, we’ll see if that’s true or not. In any case, yes, I consider the whole loan as part of my responsibility, not just any small portion of it.

Take care!


13 Debt HaterNo Gravatar April 2, 2015 at 3:04 pm

Nicely done, you have a huge increase your net worth this month! Even though you changed up your method a bit and like you said the valuation of property can be different from one appraisal to the next, I think if you stick with something consistent you’ll still represent the growth.


14 FI FighterNo Gravatar April 3, 2015 at 1:21 pm

Debt Hater,

Thanks! Moving forward, I think I will stick to this approach as it’s cleaner and easier to follow. Most likely, I won’t update things like property values every month, but just periodically, based on market trends.



15 FerdiSNo Gravatar April 2, 2015 at 11:32 pm

That’s a nice pop in your net worth number! Congratulations — your hustles and hard work are starting to pay off. Keep up the good work.



16 FI FighterNo Gravatar April 3, 2015 at 1:22 pm


Thanks! The hustles are definitely doing well, and in many cases, even outperforming my own rentals. I’m very grateful I got into those deals when I did.

All the best!


17 No Nonsense LandlordNo Gravatar April 3, 2015 at 1:41 pm

Hopefully you went out on eBay and bought some 10% off coupons for Lowe’s. Or already had some…


18 FI FighterNo Gravatar April 5, 2015 at 12:16 am


Yup, I got a few coupons, although from Home Depot for 10% off when I closed escrow… Very convenient!



19 Happy FrugalerNo Gravatar April 4, 2015 at 11:02 pm

FI Fighter,

It seems a big jump in the Net Worth is valuation methodology change, how comfortable are you that the new methodology is accurate?

For the five properties, would it be more reasonable to use either an appraised or assessed value than a personal estimate or cost?

Overall, what version of “GAAP” you use is irrelevant, what generally is relevant is consistency of methodology. That is to say that whatever methodology you choose, you continue to maintain that methodology. After all, the change month to month, which is your measure of performance, will be impacted by your methodology choice.

An example for me is that my wife, Ms. Fruger, values one of my RRSP balances at the cost in my brokerage account, even though it averages a 10%+ return. This means that a $75,000 investment earns $625 per month, but she wouldn’t include any return until the account is updated 1x per year! While she is being consistent, which I applaud, she’s being consistently wrong in my opinion, though it is just an opinion.

My preference for methodology choices is to be (1) consistent, and (2) to be able to independently verify value. If we meet 1 and 2 in the valuations, I’m happy!


20 FI FighterNo Gravatar April 5, 2015 at 12:16 am

Happy Frugaler,

Thanks for the feedback and comment; I agree, consistency is important, otherwise the month to month variations will be impossible to compare.

As it pertains to valuation, for the out of state rentals (#3, #4, #5), I simply went with the purchase price, which should be close to any appraisal done today since these type of Midwest properties don’t appreciate much… Also, the overall market has been going up, so I strongly doubt that these properties have decreased any in value.

When it comes to the Bay Area rentals, that’s where it gets a tad tricky. It’s very tough to go with any “most recent appraisals” because in a surging market, appraisals are always lagging behind… So, forget about going with an appraisal that was done 1-2 years ago, that’s ancient history… Even my cash out refi appraisals from January are completely out of date today. For now, my plan will simply be to NOT update my Bay Area valuations every month, but rather semi-periodically, to give the market time to settle. I’m going with “recent comps” sold/pending prices to determine property value. I keep very up to date with the market, and also know what my friends are buying to get a feel on current prices 😉

In general, I err on the side of being conservative, and I feel that any comps on the market today will sell for higher than the values I set on each Bay Area rental. Saying that the market is very hot right now would be a huge understatement.

All the best!


21 No More WafflesNo Gravatar April 6, 2015 at 2:44 am


Excellent post, very clear and the information flows nicely.

Building your net worth through rental properties continues to amaze me because housing is extremely expensive in Belgium. Weirdly enough, rental prices are rather low. That’s why a lot of the investment opportunities in real estate I’ve run accross don’t offer anything more than a 2% return every year, even with the low interest rates we’re currently enjoying.

Keep it up, you’re doing great!


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