This year is just about over which seems really crazy to me. It feels like only yesterday that I was lying on the beach in Maui, contemplating my next moves in life. At that time, I was getting very much acclimated to the lifestyle I envisioned early FI would look like, and kind of figured that I would just need to grind it out at work for ONLY ONE MORE YEAR…
How quickly things change… These days, I’m immersed back into the world of work and engineering again. The hours are long, stress high, and the lifestyle is basically the complete opposite of a beach in Maui.
Short term sacrifice for long-term reward? Well, that’s my story, anyway! Let’s get to the net worth update and see if all these “sacrifices” are making a noticeable difference…
According to Mint, my net worth is currently $716,124.37. This represents an increase of 1.92% from last month ($702,618.90). I’m still using Zillow’s Zestimate to determine the value of my properties.
I currently have $11,043.12 stashed away in my checking account ($7,257.38 previously). These are funds I have readily available for investing.
This month, I was FINALLY able to pay off all the debt that I owed my business partners, who helped me come up with funds necessary to close escrow on Rental Property Side Hustle #2.
With that repayment out of the way (courtesy of my $30,000 sign-on bonus at the new job), I should be able to rapidly build up free cash moving forward.
After some debate, I’ve pretty much accepted the fact that I won’t be looking for any more real estate deals. I might possibly attempt a cash out refi on one of my existing Bay Area units, but I don’t anticipate having to save up funds for a new purchase anytime soon. By soon, I mean within the next six months or so.
At this point, I really would like to just hoard cash and get back into buying stocks again. For the better part of 2012-2014, my sole focus has been on rental properties… I purchased 1 rental in 2012, 3 rentals in 2013, and 3 more this year (2 partnership deals). I currently control 7 properties and 9 units total.
I’m going to strive for some more balance now.
I owe the following loans:
Rental Property #1: $225,192.46
Rental Property #2: $224,777.07
Rental Property #3: $115,729.48
I currently own Alibaba (BABA) stock. My other investments are in 401k and Roth IRA.
Roth IRA: $58,456.96
Investments are up this month across the board. The biggest change occurring this month was the rapid ascent of BABA stock. I also purchased an additional 18 shares last week to increase my position to 118 shares.
According to Zillow, here are the values of each property:
Rental Property #1: $432,459.00
Rental Property #2: $458,664.00
Rental Property #3: $119,520.00
Rental Property #4: $86,130.00
Rental Property #5: $106,386.00
To keep track of my side hustle deals, I am simply inputing the downpayment amount. Rather than having to keep track of each property value and dividing out my ownership stake (25%), I’m going to keep this simple and uncomplicated. However, these deals were made with the idea of future appreciation in mind, so ultimately their property values do matter!
Rental Property Side Hustle #1: $24,500.00
Rental Property Side Hustle #2: $32,562.00
The following debts should be listed under the Loans tab, but unfortunately Mint forces manually inputted loans to show up under the Properties tab.
Rental Property #4: $63,758.01
Rental Property #5: $125,080.41
Rental properties experienced a ton of volatility this month. Rental Property #1 is up noticeably, but the Chicago properties got hammered this month. Rental property #3 is down about $20,000 and Rental Property #5 is down $30,000. Yikes!
But not to fear, because these are income producing properties anyway, so it really doesn’t matter what Zillow thinks…
The good news is that I was able to eliminate my $6,495.66 debt this month! 🙂
The total value of all assets now checks in at $1,470,689.18, an increase of 0.43% from last month ($1,464,413.94). I also owe $754,564.81.
Overall, the net worth is up this month, but it hasn’t really moved the needle in quite some time. A lot of that has to do with Zillow’s fluctuation in property values, which again swung violently in the negative direction this month. In any case, we will just have to keep on marching forward towards early FI. If the market holds up, who knows, maybe we’ll be able to close in on $1,000,000 before early FI! Who would have thought any of this would even be possible just a few short years ago?