October 2013 Net Worth Update

This month proved to be less eventful than I was expecting. Originally, I was planning on closing Rental Property #4 by the middle of the month. As it turns out, my debt-to-income ratio is too high, so I was unable to secure the loan without bringing on a co-signer. I have since been able to locate a co-signer, but closing has been pushed out to early November. All parties involved feel confident we will get through underwriting this time around, so fingers crossed!

Since I was unable to close, not much movement took place in October. Most of my funds (cash) are currently frozen and just sitting in my checking account… doing nothing. Generally, I prefer not to move too much money around when closing, since I’m always worried underwriting will come back and find something else to nitpick or scrutinize. This happened with Chicago, and they were pinging me for updated bank statements all the way up to the day of closing. It’s crazy… which is another reason I don’t like closing and want to get all these loans squared away as soon as possible.

So, without rambling any further, here is the net worth update for this month:


Net Worth

According to Mint, my net worth is currently $527,010.49. This represents an increase of 18.5% from last month ($444,860.79). Again, I’m still using Zillow’s Zestimate to determine the value of my properties and this is the main reason why my net worth is fluctuating so much. The housing market in the Bay Area has slowed down a bit this month, so I’m hoping prices will stabilize a bit, and Zestimate will stop bouncing around so much. Otherwise, I will stop using it to track my property value (net worth).


I currently have about $37,000 in cash sitting in my primary checking account. Most of the funds are there to close on Rental Property #4, and the rest is just there to create the illusion of a cash buffer (to appease the underwriter). As soon as the property closes, I’m moving the cash out and back into investments (probably stocks). I do have another checking account where I hold my emergency reserves, but that’s not accounted for using Mint. I had about $60,000 in cash last month, but I’ve transferred out $30,000 or so into a “safe haven” investment that will help generate some interest before I’m ready to close on Rental Property #5.


I owe the following loans:

Rental Property #1: $229,383.17
Rental Property #2: $229,146.05
Rental Property #3: $117,499.29

Total: $576,028.51


I currently own no individual stocks. My only investments are in 401k, Roth IRA and a safe haven index fund:

401k: $99,703.25
Roth IRA: $50,051.09
Index Fund: $29,255.19

Total: $179,009.55


According to Zillow, Rental Property #1 is now worth $405,884.00. This represents a 16.3% jump from last month ($348,922.00). In September, I felt like the Zestimate was far too low… but now I feel like it’s a tad too high! Although it’s definitely closer now than it was before. Rental Property #2 is now worth $373,240.00, which is 1.9% higher than last month ($366,229.00). Even Rental Property #3 is up 5.8%, valued at $152,546.00. It was previously worth $144,177.00.

Rental Property #1: $405,884.00
Rental Property #2: $373,240.00
Rental Property #3: $152,546.00

Debt: $45,000

Total: $886,670.00

Property value is up 8.8% overall, compared to last month ($814,328.00).


Just like with stocks, the real estate market has been very good this year. It seems like my investments are keeping pace, and climbing up accordingly. The total value of my assets are now well north of $1,000,000 mark, checking in at $1,148,039.00. I still owe $621,028.51, but have plenty of time (30 years) to pay it off. As long as the assets and cash flow (covered in the monthly cash flow report) keep rising, I’m not too worried. So, let’s hurry up and close Rental Property #4 and keep the momentum going strong. 🙂

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FI Pilgrim
6 years ago

That’s great progress, and even if it’s just according to Zillow an 18% increase over last month is tremendous. My progress isn’t quite as impressive as yours. 🙂

6 years ago

I’ve never used the Zestimate to calculate my condo’s value – I’ve always checked out Redfin. And for my net worth, I’ve kept it at the purchase price. I figure that will help account for the taxes. My current estimation is that it has gone up in value enough to cover the taxes. It looks like the Zestimate was about $45k under my purchase price last year and hasn’t quite caught up to my purchase price, but is still up about $30k, hmmm.

Ugh, closing is terrible! I feel your pain.

What is your “safe haven” investment?

6 years ago

Oh Zillow… how we long for your estimate to be accurate! 🙂

Great month, regardless of how you slice and dice the value of the assets. Since you are more focused on the cash flow, the Zillow fluctuations are just an annoying aside. I think there are a couple of other valuation tools out there you could potentially use if you wanted. Or perhaps come up with an average of a couple of them. That should stabilize things a bit. Looking forward to seeing how things work out with house #4!

Financial Samurai
6 years ago

Wow! An 18% increase in one month is huge! At this rate you’ll double your net worth in four months. Pretty sweet!

Keep it up!


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