This year is now half over and we are entering what should be some very exciting times! The fall season is typically more eventful, so I’m getting myself prepared as the summer season slowly wanes away.
Up to this point, the net worth has progressed rapidly, but I have a strong feeling that progress will slow down greatly in the upcoming months… More details outlined below!
Here is where my Net Worth stands at the conclusion of July:
Here is a breakdown of assets:
Here is a breakdown of debts:
Cash and Credit Cards
I currently have $117,574.34 stashed away in cash and emergency fund accounts ($118,993.62 previously). For this month, I decided to lump the two categories together, in an attempt to make accounting easier.
I owe $71.70 in credit card debt.
I owe the following loans:
Rental Property #1: $323,777.71
Rental Property #2: $327,308.48
Rental Property #3: $114,226.27
Rental Property #5: $123,000.46
Rental Property #4 is owned outright and there is no loan associated with it.
Side Hustle Loans
Rental Property #SH 1 (25%): $387,490.33 ($96,872.58)
Rental Property #SH 2 (25%): $385,989.96 ($96,497.49)
Rental Property #SH 3 (50%): $403,331.26 ($201,665.63)
Total: $1,177,975.74 ($395,035.70)
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: $5,139.22
Roth IRA: $57,349.63
I decided to liquidate out of my 401k ($129,248.70) this month; I am now sitting in cash-equivalent accounts. I realized this month that my preference is to wait on the sidelines as we ride out the upcoming fall and winter seasons. If nothing too crazy happens in the markets, I may look into re-deploying the funds back into stocks next year (or at a later date).
My current 401k ($5,139.22) is still invested in stocks, so this account value will still be subjected to changes from month-to-month. The same applies to my Roth IRA account.
The brokerage account is up this month as I deployed some fresh capital into this account. Currently, the new funds are sitting idle, waiting for a good opportunity. As I mentioned previously, I am keeping a close eye on oil and energy stocks, as well as on some beaten down mining stocks.
Most likely, I won’t be making any more investment moves until the market settles out and these sectors find a hard bottom. Patience will be key…
Here are the values of each property, based on my own estimate:
Rental Property #1: $490,000
Rental Property #2: $490,000
Rental Property #3: $157,500
Rental Property #4: $95,000
Rental Property #5: $180,000
Properties were reassessed last month and the property values remain unchanged this month.
For Rental Property #3-5, I elected to stick with the original purchase price. These properties are located in the Midwest, and the neighborhoods I invested in don’t appreciate quite so rapidly as the Bay Area. Again, to err on the side of conservative, I’ve decided it’s best to just stick to the original purchase price.
For properties, I will refrain from updating the values each and every month. Instead, I will review and re-assess quarterly, to allow sufficient time for the market prices to stabilize.
My last reassessment was June 2015. The next property assessment is scheduled for September 2015.
Side Hustle Properties
Rental Property Side Hustle #1 (25%): $550,000 ($137,500)
Rental Property Side Hustle #2 (25%): $580,000 ($145,000)
Rental Property Side Hustle #3 (50%): $520,000 ($260,000)
Total: $1,570,000.00 ($542,500.00)
The side hustle properties were also reassessed last month.
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 $2,323,333.61, an increase from last month ($2,317,769.31). I also owe $1,283,420.32.
Gains were minimal this month, as investments were mostly held static and not much fresh capital was injected into any accounts.
I realize that I’m taking somewhat of an extreme measure by cashing out of my 401k, but we live in some crazy times right now and I just want to err on the side of caution. My plan is to ride out the second half of this year in cash, and if nothing dramatic happens in the markets, then that would be wonderful news!
Down the road, I can always re-enter into the markets and convert the cash funds back into investments. I might miss out on some subtle gains, but at this point I’m willing to sacrifice some returns for peace of mind. 🙂
Other than that, it’s just business as usual. Overall, I’m pleased with the Net Worth progress made this year and really couldn’t ask for anything more. Moving forward (and into the future), my main focus will be to again work on bumping up the monthly cash flow.
Now that I’m mostly sitting on cash (and a bunch of rental properties), I’m in a comfortable position as we continue our march towards early FI!
2015 Net Worth Summary:
July 2015: $1,039,913.29
2014 Net Worth Summary:
2013 Net Worth Summary: