June 2020 Net Worth Update

 

This is my official Net Worth Update for June of 2020. Below are my actual numbers for ALL my investments and liabilities as of 06/09/2020. Detailed explanations and a quick summary can be found below. If you would like to see my previous months net worth posts, please visit my Net Worth Tracker.  I have been tracking my net worth monthly since May 2015.  If you want to learn how to track net worth then check out how I am doing it.

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June 2020 Net Worth Update

 

 

TOTAL NET WORTH: $1,040,426

 

Quick Summary and comments: +$75,202

5 years ago I started Cash Flow Diaries as personal net worth tracker.  I started tracking my journey with $310,683 of net worth.  My goal was to reach 1 million dollars in net worth.  I am happy to report that I have finally reached my goal of being a millionaire.  I honestly never really had a timeline of when I thought I would finally get to this point but I knew if I kept investing in real estate and continued living a somewhat frugal lifestyle, that it would eventually come.

I can’t lie and say I don’t feel proud of myself.  I never thought I would be in this situation and there is only really one reason how this all came to be:

REAL ESTATE INVESTING!!

If I would have never have picked up and read Rich Dad, Poor Dad when I was in my 20’s, I would have never have thought to begin investing in real estate.  My life is so much different today than it was 5 years ago and I have never been happier.  Despite reaching my net worth goal, I find myself still highly motivated and passionate to continue building my real estate empire.  Financial freedom is what I want and I am still not there yet.   I do feel that I am about 2 to 3 paid off rental properties away from being financially free.  Realistically it will probably take me another 3 to 5 years or so to reach my financial freedom.

 

Personal Life Update:

Where do I begin?!  I now have 2 kids, a two year old and a seven month old.  Life is pretty hectic in the cash flow diaries household but the love and joy these kids bring out in us is second to none.   I quit my W2 job months ago just before the covid-19 virus hit to become a 100% commission real estate agent.  Trust me when I say the timing could not have been worse to leave my stable paying job with benefits and move to real estate but surprisingly, it has gone well for me.

Despite having an unstable income, I find myself living a stress-free life and am far happier working for myself than I was working a W2 job.  I can’t wait to see what the future brings with my new career and having the luxury to do what I want, when I want is proving to be the best way for me to live.

 

Real Estate Investing Update:

I have not slowed down one bit in the real estate investing side.  Since my last net worth update, I have sold off two more properties and acquired a new one.  It has left me with 6 investment properties.  My remaining portfolio of properties consist of all Class B or A properties with rents ranging from $1050 to $1450.  I am now making over $50k per year in rent income alone.

I have also just recently began the search for my next project.  Depending on what falls in my lap, I will either purchase a fixer upper to keep and rent, or to flip.  It really just depends on the deals I can find.

Okay enough about that, lets jump into my net worth categories.

Assets: Explanations of each of my assets.

Cash:   +$182,171.64

I sold the majority of my stock recently when all stocks were back to 100% of pre-covid numbers.  I also sold a few properties which has led me to currently have a lot of cash in hand.  I feel very good about my cash assets for now and do plan on using this same cash to fund my next real estate project.

My cash as noted above in the spreadsheet consists of my wife and I’s checking account and my REI (Real Estate Investing) checking account.  I am the sole income earner in the household.

HSA account: +$851

Saw a small increase in my HSA account.  Nothing special.

My HSA contributions are what is left over in my account from my previous employer (W2 job).  I am no longer contributing to this HSA account.

Company Stock Options: $0

I recently sold off all my company stock options after reaching all time highs again after the huge crash we had when Covid hit.  I am not convinced we are in a healthy economy and did not feel comfortable holding on to stocks anymore.

These are stock options from my day job. I am fully vested.    

Stock Portfolio: +$12,123

I sold off 90% of my stocks recently and the majority of this money is cash leftover in my trading account.  For now the plan is to leave it in there as I plan on buying stocks when and if there is another stock crash.

401K: -$151

I am no longer employed at the job in which I had this 401k established in.  Even when I was employed, I had stopped contributing to my 401k.  I have no immediate plans to touch this account.

Property # 1 (Indianapolis, IN)

All is good with my primary residence at this time.  We live in downtown Indianapolis and we love living here.  We have a carriage house that we built in the back which we list on Airbnb.

My current primary residence in Indianapolis.

Property # 2 (Austin, TX)

Rent always is paid on time and occasionally I get a repair call.  In the last 6 months, I have only received one call for a toilet seat leak in which the tenant actually fixed on his own.  Cost me $0 to fix.  My current monthly mortgage payment on this one is $980.  It’s rented for $1300.

I was planning on increasing the rent on this one but since Covid hit, I feel really bad about it and plan on delaying the rent increase for the foreseeable future.

I self manage this property from remote and will continue to do so until it makes sense to get a property manager.

This was my first rental property.  It’s actually the first house I ever purchased in general.  I bought it when I moved to Austin way back in the day and it was my primary residence for a long time.  I originally never had plans for it to become a rental property but when I discovered the beautiful world of real estate investing, I knew I would someday convert this one to a rental which is now.   I expect gradual appreciation from this property because it is in the suburbs Austin which has been growing tremendously.

Property # 3 (Indianapolis, IN)

Tenants paying on time and no repairs made.  Currently still a cash cow!  Monthly mortgage payment on this one is currently $372  It’s rented for $1200.

This was the house I lived in when I first moved to Indianapolis.  It was a rental property, then my primary residence and now back to a rental property.  It’s a cash cow and I love this one a lot!

This was originally a turnkey property I bought back when I lived in Austin.     I bought this house for $67k back in June 2015 and cash flowed off it until I decided to move to Indy and move into it when we first came to Indy.   I spent an additional $30k in renovations when  I moved into this house to make it an awesome primary residence.  So I am all in for $100k.    Here are the details on when I originally bought this one as a turnkey rental property.

This was my first turnkey rental property I purchased out-of-state in Indianapolis when I was living in Austin.

Property # 4 (Indianapolis, IN)

Rent paid on time.  One repair request was made for the gutters being clogged up.  I fixed it myself and it cost me $0.    Current mortgage on this one is $0.  Paid for it all in cash!    Its currently rented at $1100 monthly and the tenants are on year 2.

This was the rental that I had originally converted it into an airbnb in late January 2018.  It actually did make more money as an airbnb then a traditional rental but not that much more.  At the end of the day, it wasn’t worth it to us to maintain and clean it was a new baby coming.  We just didn’t have time and if we hired cleaners, it would have only left us with a few hundred more per month then a normal rental.   We decided to convert this back into a normal rental.

You can see how much money I made in the first two months of being on airbnb here.

I bought this house as a wholesale proprety here in Indy for $65k in a very popular Indy neighborhood back in late October 2016.   I put in about $20k getting it rent ready.    Added an additional $10k to make it airbnb ready.  All in for about $100k.

 

Property # 5 (Indianapolis, IN)

Rent paid on time and one repair request made for a roof leak.  Cost me $40 to fix.  Current mortgage on this one is $0.  Paid for it all in cash!    Its currently rented at $1050 monthly.

These tenants have been great and this property has been a cash cow!

I bought this home as a foreclosure off the MLS.  Paid in cash, fixed it up and rented it out in 2017.  Check here for all the numbers and details of this property.

 

Property # 6 (Indianapolis, IN)

This is my latest acquisition.  Purchased this property from the MLS in late March 2020.  Did a complete rehab on it had it rented in June of 2020 for $1450 in a Class A neighborhood.

I purchased this property for $105k, put in $58k to rehab it for an all in cost of $163k.   This house is now worth at least $215k and would have made for a killer flip if I had decided to sell it.  I however chose to keep it as a rental because I love this house and neighborhood.  The number’s aren’t super for a rental but considering its a Class A property and that it is completely paid off, I am perfectly okay with that.

 

Property # 7   (Indianapolis, IN)

After 10+ years of owning this investment, it finally was sold off.  It was a performing note that I was carrying and the owner finally decided to refinance into a traditional lender.

This was a note that I own from a house that I sold via owner finance in the Austin area.

 

Property # 8  (Indianapolis, IN)

This property was a nightmarish flip I was into that took a year and half from acquisition to being sold.  It was my first full gut renovation and I learned so much from this property.  It was a blessing when it finally sold earlier this year and I did not make any profit from this one.  I actually lost just a few hundred dollars actually.   I was lucky to have not lost a lot of money on this one and am very happy to have learned from it.   What I learned from this one will only help me achieve greater success in the future projects to come.

 


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Liabilities: These are self-explanatory so I wont dive too deep into these however I would like to include the items below for informational purposes.

Credit Card

I only use one credit card (rewards card) that I use to purchase my everyday expenses. I pay this off in full every month. I am receiving 1.5% cash back on this card and am very pleased with it.

 

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