It’s been a busy month with a lot more spending than usual. Once again, I’m involved in another rehab project, working on getting Rental Property SH #3 up to my turnkey standards. It’s costing me more than I had originally budgeted for, and as a consequence, the Net Worth is going to have to take a step back in the short-term.
Read on and see how things went in February!
According to Mint, my net worth is currently $771,405.52. This represents a decrease of 1.83% from last month ($785,811.26). I’m still using Zillow’s Zestimate to determine the value of my properties.
I currently have $13,377.41 stashed away in my checking account ($12,532.08 previously). Cash appears to have stayed flat this month, but the reality is I dug deeply into my cash out refi funds to support the rehab costs.
When we first started the project, I anticipated spending $10,000 in total for both labor and materials. As we progressed, I decided to go ahead and upgrade both bathrooms, which added an additional $5,000 in expenses. Further, my investment partner is in the middle of another real estate transaction, so for now, I’m covering him on all the expenses on this project.
So, the immediate hit to my free cash has been pretty intense!
I owe the following loans:
Rental Property #3: $114,732.98
Rental Property #1 was eliminated from the ‘Loans’ section this month. Since I haven’t yet registered my account through Mint, for this month, I am accounting for the new Rental Property #1 loan under the ‘Properties’ tab.
Similarly, last month Rental Property #2 disappeared from this list. That loan also hasn’t been cleared for online access, so in the short-term, both loans will appear in the ‘Properties’ tab.
I apologize for the inconvenience; in a perfect world, both loans would be accounted for in the ‘Loans’ tab, where they belong.
I currently own stocks in my taxable brokerage account. My other investments are in 401k and Roth IRA.
Current 401k: $4,758.54
Roth IRA: $59,931.03
Investments are up significantly this month since I started purchasing individual stocks again. I’ve injected about $60,000 of fresh capital, as I attempt to rebuild my dividend portfolio.
My 401k is static (starting this month), since I am no longer qualified to contribute to it while on my leave of absence.
According to Zillow, here are the values of each property:
Rental Property #1: $490,824.00
Rental Property #2: $481,243.00
Rental Property #3: $114,238.00
Rental Property #4: $86,983.00
Rental Property #5: $106,889.00
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, 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
Rental Property Side Hustle #3: $35,000.00
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 #1: $326,250.00
Rental Property #2: $330,000.00
Rental Property #5: $124,447.58
Rental properties experienced only slight movement this month. The local properties are up again this month, and the out of state ones are mostly flat.
Again, the loans on Rental Property #1 and Rental Property #2 are being accounted for in this section, even though this is not where they should be; Mint is putting manual loans in this section by default. Once my lender grants online access to my loans, I will move them back to the appropriate ‘Loans’ section.
The total value of all assets now checks in at $1,669,192.06, an increase from last month ($1,579,311.13). I also owe $897,786.54.
Thanks to the refi on Rental Property #1 this month, my total assets now check in at over $1.6MM! Wow, that’s pretty exciting, and I’m getting increasingly closer to $2.0MM!
To me, the total value of assets you control as an investor are far more important than your Net Worth figure, especially when you are young and have many years of investing ahead. If you structure your deals correctly, your assets will only increase in value over time, while the debt gets significantly reduced.
As readers of this blog are aware of, I’m not the most conservative of investors. I believe that leverage can be a great tool in helping a financial freedom fighter achieve their goals in a relatively short amount of time. Of course, there’s more risk using this approach, so it’s always important to stash cash and to have multiple exit strategies. In my case, I’m trying to be a bit more conservative with my investments, and that’s one of the reasons why I’ve been so focused on investing in large cap blue chip dividend stocks. Over time, though, I truly believe that accumulating as many assets as reasonably possible is how you build substantial wealth.
Although the Net Worth is down this month, I’m not worried about that at all. Sometimes you have to take a step back before you take take two steps forward. In this case, I’m very confident that the decision to fully rehab Rental Property SH #3 was the correct one, and I’m optimistic it will pay off in the long run. In any case, it feels especially good to have locked down another Bay Area property, which are getting tougher and tougher to win these days!
As I always like to emphasize, I’m a long-term investor! If I can secure the assets that I want today, it’ll only be a matter of time before I start to reap the rewards. So, I’m going to keep ignoring the noise, and I’ll keep on pressing on…
2015 Net Worth Summary:
February 2015: $771,405.52
2014 Net Worth Summary:
2013 Net Worth Summary: