July 2015 Net Worth Update

This year is now half over and we are entering what should be some very exciting times! The fall season is typically more eventful, so I’m getting myself prepared as the summer season slowly wanes away.

Up to this point, the net worth has progressed rapidly, but I have a strong feeling that progress will slow down greatly in the upcoming months… More details outlined below!

Net Worth

Here is where my Net Worth stands at the conclusion of July:

Net_Worth_July_2015_3

Month-Over-Month: (+$5,818.87)

Here is a breakdown of assets:

Net_Worth_July_2015

Here is a breakdown of debts:

Net_Worth_July_2015_2

Cash and Credit Cards

I currently have $117,574.34 stashed away in cash and emergency fund accounts ($118,993.62 previously). For this month, I decided to lump the two categories together, in an attempt to make accounting easier.

I owe $71.70 in credit card debt.

Total: $117,502.64

Month-Over-Month: (-$1,490.98)

Loans

I owe the following loans:

Rental Property #1: $323,777.71
Rental Property #2: $327,308.48
Rental Property #3: $114,226.27
Rental Property #5: $123,000.46

Total: $888,312.92

Month-Over-Month: (+$326.27)

Rental Property #4 is owned outright and there is no loan associated with it.

Side Hustle Loans

Rental Property #SH 1 (25%): $387,490.33 ($96,872.58) 
Rental Property #SH 2 (25%): $385,989.96 ($96,497.49) 
Rental Property #SH 3 (50%): $403,331.26 ($201,665.63) 

Total: $1,177,975.74 ($395,035.70) 

Month-Over-Month: (+$0)

My portion of the Side Hustle loans are accounted for above. My partnership stake in each property is shown in the ( ).

Investments

I currently own stocks in my taxable brokerage account. My other investments are in 401k and Roth IRA.

Current 401k: $5,139.22
401k: $129,248.70
Roth IRA: $57,349.63
Brokerage: $59,021.72

Total: $250,759.27

Month-Over-Month: (+$6,983.58)

I decided to liquidate out of my 401k ($129,248.70) this month; I am now sitting in cash-equivalent accounts. I realized this month that my preference is to wait on the sidelines as we ride out the upcoming fall and winter seasons. If nothing too crazy happens in the markets, I may look into re-deploying the funds back into stocks next year (or at a later date).

My current 401k ($5,139.22) is still invested in stocks, so this account value will still be subjected to changes from month-to-month. The same applies to my Roth IRA account.

The brokerage account is up this month as I deployed some fresh capital into this account. Currently, the new funds are sitting idle, waiting for a good opportunity. As I mentioned previously, I am keeping a close eye on oil and energy stocks, as well as on some beaten down mining stocks.

Most likely, I won’t be making any more investment moves until the market settles out and these sectors find a hard bottom. Patience will be key…

Properties

Here are the values of each property, based on my own estimate:

Rental Property #1: $490,000
Rental Property #2: $490,000
Rental Property #3: $157,500
Rental Property #4: $95,000
Rental Property #5: $180,000

Total: $1,412,500.00

Month-Over-Month: (+$0)

Properties were reassessed last month and the property values remain unchanged this month.

For Rental Property #3-5, I elected to stick with the original purchase price. These properties are located in the Midwest, and the neighborhoods I invested in don’t appreciate quite so rapidly as the Bay Area. Again, to err on the side of conservative, I’ve decided it’s best to just stick to the original purchase price.

For properties, I will refrain from updating the values each and every month. Instead, I will review and re-assess quarterly, to allow sufficient time for the market prices to stabilize.

My last reassessment was June 2015. The next property assessment is scheduled for September 2015.

Side Hustle Properties

Rental Property Side Hustle #1 (25%): $550,000 ($137,500)
Rental Property Side Hustle #2 (25%): $580,000 ($145,000)
Rental Property Side Hustle #3 (50%): $520,000 ($260,000)

Total: $1,570,000.00 ($542,500.00)

Month-Over-Month: (+$0)

The side hustle properties were also reassessed last month.

My portion of the Side Hustle equity is accounted for above. My partnership stake in each property is shown in the ( ).

Summary

The total value of all assets now checks in at $2,323,333.61, an increase from last month ($2,317,769.31). I also owe $1,283,420.32.

Gains were minimal this month, as investments were mostly held static and not much fresh capital was injected into any accounts.

I realize that I’m taking somewhat of an extreme measure by cashing out of my 401k, but we live in some crazy times right now and I just want to err on the side of caution. My plan is to ride out the second half of this year in cash, and if nothing dramatic happens in the markets, then that would be wonderful news!

Down the road, I can always re-enter into the markets and convert the cash funds back into investments. I might miss out on some subtle gains, but at this point I’m willing to sacrifice some returns for peace of mind. 🙂

Other than that, it’s just business as usual. Overall, I’m pleased with the Net Worth progress made this year and really couldn’t ask for anything more. Moving forward (and into the future), my main focus will be to again work on bumping up the monthly cash flow.

Now that I’m mostly sitting on cash (and a bunch of rental properties), I’m in a comfortable position as we continue our march towards early FI!

 

Fight On!

 

2015 Net Worth Summary:

July 2015: $1,039,913.29

June 2015: $1,034,094.42

May 2015: $936,793.57

April 2015: $918,867.89

March 2015: $902,184.99

February 2015: $771,405.52

January 2015: $785,811.26

 

2014 Net Worth Summary:

December 2014: $781,996.44

November 2014: $763,680.73

October 2014: $716,124.37

September 2014: $702,618.90

August 2014: $724,476.61

July 2014: $718,780.24

June 2014: $693,514.01

May 2014: $665,115.97

April 2014: $633,456.43

March 2014: $598,435.05

February 2014: $557,154.47

January 2014: $586,137.08

 

2013 Net Worth Summary:

December 2013: $569,022.97

November 2013: $542,725.46

October 2013: $527,010.49

September 2013: $444,860.79

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Dominic @ Gen Y Finance Guy
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I am right there with you FI Fighter.

I am sitting on a lot of cash in my retirement accounts and my checking/savings accounts. To me the risk/reward favors the downside. You have to ask yourself if your willing to risk 10-30% of your portfolio for a potential 3-5% of upside.

I like asymmetrical risk, but when it’s the other way around, where I can risk 3-5% of my portfolio for 10-30% gains.

We have all witnessed the markets failing to maintain any gains. We have been up as much as 4% this year (looking at SPY etf), and down as much as 4%. We are in this range that I think is eventually going to break to the downside.

But we will see. In the meantime we may be leaving a couple hundred basis points on the table. But you can more than make up for that after a decent sized correction comes.

Cheers!

joe
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joe

do you account for taxes and transaction costs in your real estate equity? I.e. after depreciation and selling costs you may not actually be in the millionaire range right now if you liquidated everything.. just a thought..

Tawcan
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We don’t have that much cash stashed away. I like putting money to work so they can work hard for us. I do see reasons why you’d want to have that much cash stashed away though.

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No Nonsense Landlord
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That is a bit of cash, but not really too much when you consider your expenses. I am aggressively paying down a rental property mortgage so that I am only stuck with two mortgages, and less than $400K on ~2.4M in RE.

Keep working, keep saving, keep looking for deals. I am winding down, and look forward to cash flowing my retirement.

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Mauij
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I love to see your net worth breakdown. And asset and liability breakdown.

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