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August 2014 Net Worth Update

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Now that I’m back from my vacation, I can finally get back to the updates. I’m still behind on the Cash Flow Statements, but since we are in a new month, let’s go ahead and take care of the Net Worth Update first.

Here are the results for August:

Net Worth

According to Mint, my net worth is currently $724,476.61. This represents an increase of 0.79% from last month ($718,780.24). I’m still using Zillow’s Zestimate to determine the value of my properties.

Net_Worth_August_2014

Cash

I currently have $33,340.95 stashed away in my checking account ($20,415.29 previously). These are funds I have readily available for investing. As it turns out, 3 parters and I recently won a deal for a Bay Area property, so I still need to transfer about $25,000 to close escrow.

I am stretching myself thin a little bit here, but luckily I have some stock options and RSUs that will be vesting soon (tomorrow, I believe). This should help replenish the investing cash a bit.

Loans

I owe the following loans:

Rental Property #1: $225,863.44
Rental Property #2: $225,167.53
Rental Property #3: $115,729.48

Total: $566,760.45

Investments

I currently own no individual stocks. My only investments are in 401k and Roth IRA.

401k: $124,898.74
Roth IRA: $57,566.47
Brokerage: $4.65

Total: $182,469.86

Investments are up significantly this month. I’m still investing in my 401k, and I contributed an additional payment this month, with a large portion of my annual bonus being set aside for buying more shares. Last month’s investments were valued at $173,447.31. I keep track of my retirement accounts, but the monthly variations and overall performance mean very little at this point in time.

Properties

According to Zillow, here are the values of each property:

Rental Property #1: $407,191.00
Rental Property #2: $466,754.00
Rental Property #3: $152,042.00
Rental Property #4: $90,889.00
Rental Property #5: $162,242.00

The following debts should be listed under the Loans tab, but unfortunately Mint forces manually inputted loans to show up under the Properties tab.

Debt: $14,256.84
Rental Property #4: $63,758.01
Rental Property #5: $125,080.41

Total: $1,076,022.74

Rental properties, outside of Rental Property #2, are all down this month. It’s kind of crazy when I look back to the beginning of this year and observe that Rental Property #1 was once valued at over $485,000 by Zillow, and is now sitting at $407,000. Rental Property #1 has been declining for awhile now… Not important in the grand scheme of things, but it’s just kind of funny to see how a property can lose so much value over the course of a year (in the “eyes” of Zillow)… a year in which the local real estate market has been booming… My own guess is that Rental Property #1 is worth somewhere in the $460,000 neighborhood range.

Rental Property #2, on the other hand, has been surging upwards for a few months, but I think Zillow is just now starting to put on the brakes. I think the current valuation is an over-estimate, and the true value of Rental Property #2 is closer to $450,000. Will we also see a trend reversal similar to Rental Property #1 in the coming months? I wouldn’t be surprised if that were to happen…

The out-of-state properties are also pulling back this month. Rental Property #5, for instance was valued at over $170,000 last month, and is now at $162,000.

With all the pullbacks in property value, I’m actually really surprised the net worth didn’t decline this month as well…

Summary

The total value of all assets now checks in at $1,494,928.81, an increase of 0.36% from last month ($1,489,563.60). I also owe $770,452.20.

Overall, it looks like the portfolio is still growing and making decent progress. As mentioned in the previous post, I have a lot of exciting news to announce, so I’m very optimistic about the future! With the recent happenings, I believe I will have an opportunity to supercharge the portfolio gains even further. Another shortcut to early FI? I hope so!

Stay tuned!

{ 16 comments… add one }
  • PaulineNo Gravatar September 2, 2014, 7:56 am

    That is really good, well done! I never update my properties’ price, maybe once a year or so, those estimates fluctuate all the time. Same for currencies, unless there is a big drop in one I don’t update the rate on my spreadsheet, so it is just an estimated net worth.

    • FI FighterNo Gravatar September 3, 2014, 5:55 am

      Pauline,

      Thanks! Yes, property values are fluctuating constantly, so it can become a headache just trying to keep up with everything. I know Zillow’s estimates aren’t the most reliable, but it provides an easy way to get a rough idea, which is why I’m still using it.

      My net worth is also just an estimate, and since property values will always be subjective, it will continue to be just an estimate moving forward…

      All the best!

  • Retire Before DadNo Gravatar September 2, 2014, 7:57 am

    FIF,
    Nice to see you back after your awesome trip. I read the other post and it sounded awesome! Looking forward to the exciting news.
    -RBD

    • FI FighterNo Gravatar September 3, 2014, 5:56 am

      RBD,

      Thanks! I should have the exciting news announced by the end of the week! Looking forward to sharing it with everyone. 🙂

      Take care!

  • Roadmap2RetireNo Gravatar September 2, 2014, 8:00 am

    Congrats on another positive month of net worth increase. Oh and welcome back 🙂

    cheers
    R2R

    • FI FighterNo Gravatar September 3, 2014, 5:56 am

      R2R,

      Thanks! Feels great to be back home and hustlin towards early FI again! 🙂

      Best wishes!

  • writing2realityNo Gravatar September 2, 2014, 6:36 pm

    Hurry up with the exciting news already! 🙂

    Nice job, consistency is key here. Each month that ticks by a couple grand gets paid off on those mortgages, providing a nice, and at times unseen, boost the the net worth. Hopefully the speculative property with your buddies works out well and is a nice bonus in the next few years.

    • FI FighterNo Gravatar September 3, 2014, 5:59 am

      writing2reality,

      LOL! Maybe I should stop announcing about the “exciting news” every post and not actually getting to it… 😉 Kind of like dangling a carrot stick over and over again…

      I should have the announcement by the end of the week..

      Yeah, the progress made each month might seem small, but over the course of a year, or many years, it really starts to add up. When I look back to the net worth updates just a year ago, the progress made is astounding.

      When in doubt, keep on investing, saving, and grinding towards early FI!

      Cheers!

  • Financial SamuraiNo Gravatar September 3, 2014, 9:47 am

    I noticed a decrease in the Zillow valuations as well. That’s a good thing. We need to take a break from the rise!

    BTW, check out the last like on the latest Yakezie.com post. If you want to complete the Yakezie Challenge, it’s wide open for you.

  • IntegratorNo Gravatar September 7, 2014, 6:55 am

    Zillow valuations fluctuate so much from month to month. Its hard to get a good sense of how accurate they really are.

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