We’re already into the second month of 2014, so that means I’m one month closer to retirement! Things were pretty quiet again this month, as I’m still working on closing Rental Property #5. The good news is that I now have enough funds in my accounts to satisfy the underwriter. As soon as the property closes, and I pay off the remainder of my Hawaii bill, I’ll be going full swing into rebuilding my cash reserves.
According to Mint, my net worth is currently $586,137.08. This represents an increase of 3.0% from last month ($569,022.97). I’m still using Zillow’s Zestimate to determine the value of my properties.
I currently have $63,103.03 in cash sitting in my primary checking account. Last month ended with $48,329.27, so I’ve made some good progress in coming up with the funds needed to close Rental Property #5. When I first got into contract, I had originally only anticipated needing to come up with a 25% downpayment. Since the underwriting guidelines now require 30% (this is my fifth rental), it forced me ramp up the savings in a hurry.
How did I come up with the extra funds so quickly? I didn’t pay off my mortgage bills on Rental Properties #1-4 this month. No, I’m not delinquent on any payments to the lender, and I wonder never do something like that! Actually, I am about three months ahead on each property, so skipping one month was within reason (See next paragraph). Once the dust settles, I will try even harder to keep pre-paying the mortgages in advance so that my next due date is pushed out even further into the future. Before I check out of the game for good, I would like to be at least one year ahead in mortgage payments, for each rental.
The credit card bills are close to $7000. This is a combination of Hawaii and Vanilla Reload cards. Have no fear, the bulk of the bill is in Vanilla Reloads that will be paid off with the cash flow coming in for February. I used Vanilla cards to make those “missed” mortgage payments. So, although the lender thinks I paid this month, I did “miss” those mortgage payments since the Vanilla balance is still there. No, I didn’t go out and splurge on some new toys… and although Hawaii was expensive, it didn’t cost me an arm and a leg either.
Quite simply, I’m just shuffling money around to accommodate for closing. Everything should return to normal next month.
I owe the following loans:
Rental Property #1: $228,247.76
Rental Property #2: $228,173.78
Rental Property #3: $117,023.82
I currently own no individual stocks. My only investments are in 401k and Roth IRA.
Roth IRA: $50,966.67
Other Brokerage: $0.03
Investments are down for the retirement accounts this month as the stock market starts to cool off. Last month ended with investments valued at $154,705.25. That’s ok, I’m not sweating the fluctuations… These are retirement plans, after all.
According to Zillow, here are the values of each property:
Rental Property #1: $466,738.00
Rental Property #2: $361,532.00
Rental Property #3: $152,360.00
Rental Property #4: $80,706.00
Rental Property #4: $64,173.48
Again, most of the rental properties are holding steady in value, but Rental Property #1 is up again, closing at $466,738, an increase of about $12,000 from last month ($454,165.00). The other rentals are roughly the same, although I am noticing that Rental Property #2 has dropped in value, for a third consecutive month. I believe this is contrary to reality, since Rental Property #2 is by far located in the best location out of all my properties.
The total value of all assets now checks in at $1,275,630.84, an increase of 1.73% from last month ($1,253,982.52). I also owe $689,593.76. Let’s close Rental Property #5, and start rebuilding the cash reserves!