For this month, I’m going to try and mix up the Net Worth report a little, and hopefully be able to provide readers a more organized and accurate representation of my current financial statement. In general, I don’t place much value in the Net Worth report because as I’ve learned through the years, when you own a lot of real estate, the valuations are extremely subjective. Even amongst professional appraisers, the value of any home can fluctuate greatly…
Previously, I was relying on Zillow’s Zestimate to determine the value of my properties, but as we all know, these valuations are all over the place as well. Overall, I think Zillow is pretty accurate with my Bay Area rentals, but very much off point with my out-of-state properties…
Also, I was previously relying on Mint to organize all my accounts… Mint is a very useful tool, but also very limited when it comes to rearranging manually inputted loans. For the longest time, I could never figure out how to place Rental Property #5’s loan into the ‘Loans’ tab… You know, the most logical place to put it. Instead, Mint would always force the manually inputted loan to appear in the ‘Properties’ tab, which made no sense…
So, starting this month, I’m going to rely on myself to not only valuate my properties, but also to organize all the financial data.
Any feedback from readers will be greatly appreciated!
Here is where my Net Worth stands at the conclusion of March:
Here is a breakdown of assets:
Here is a breakdown of debts:
Cash and Credit Cards
I currently have $10,485.92 stashed away in my checking account ($13,377.41 previously). Cash dipped this month as I spent a bit of money on Rental Property SH #3 renovations. The good news is that the materials have all been purchased and the contractor team paid! Hopefully, we can secure a quality tenant soon and start collecting some desperately needed rent checks.
Starting next month, it will be a RELIEF to no longer have to be swiping my credit card at Home Depot and Lowe’s seemingly every other day…
I owe $223.78 in credit card debt.
Up to this point, I haven’t kept tabs on my Emergency Fund, but for completeness sake, let’s go ahead and include it this month. I have $35,000 hidden away for a rainy day.
I owe the following loans:
Rental Property #1: $325,758.62
Rental Property #2: $329,109.34
Rental Property #3: $114,732.98
Rental Property #5: $123,811.08
Both Rental Property #1 and Rental Property #2 debts reflect cash out refinanced loans. Rental Property #4 is owned outright and there is no loan associated with it.
Side Hustle Loans
Rental Property #SH 1 (25%): $388,506.38 ($97,126.60)
Rental Property #SH 2 (25%): $387,191.13 ($96,797.78)
Rental Property #SH 3 (50%): $406,000.00 ($203,000.00)
Total: $1,181,697.51 ($396,924.38)
My portion of the Side Hustle loans are accounted for above. My partnership stake in each property is shown in the ( ).
I currently own stocks in my taxable brokerage account. My other investments are in 401k and Roth IRA.
Current 401k: $4,787.93
Roth IRA: $60,440.33
Investments are mostly flat this month, as the markets have held stable.
Here are the values of each property, based on my own estimate:
Rental Property #1: $460,000
Rental Property #2: $450,000
Rental Property #3: $157,500
Rental Property #4: $95,000
Rental Property #5: $180,000
This month, a similar comp to Rental Property #1 hit the market at $475,000. Rental Property #2 recently appraised for $440,000, prior to buying season ramping up in the Bay Area. Rental Property #3-5 valuations are the purchase price I paid.
Side Hustle Properties
Rental Property Side Hustle #1 (25%): $520,000 ($130,000)
Rental Property Side Hustle #2 (25%): $560,000 ($140,000)
Rental Property Side Hustle #3 (50%): $490,000 ($245,000)
Total: $1,570,000.00 ($515,000.00)
My portion of the Side Hustle equity is accounted for above. My partnership stake in each property is shown in the ( ).
The total value of all assets now checks in at $2,192,745.17, an increase from last month ($1,669,192.06). I also owe $1,290,560.
Net Worth saw a large spike up this month, due to the new form of accounting that I’m using. The intent, though, is not to artificially inflate the numbers, but rather to provide readers with what I feel is a more accurate representation of my financial situation. With property valuations, I tried to be as objective as possible.
So, whether you accept this new style as GAAP or non-GAAP, please let me know! I sincerely do hope that this new format is easier to follow and a better approach than to what I was previously using.
2015 Net Worth Summary:
March 2015: $902,184.99
2014 Net Worth Summary:
2013 Net Worth Summary: