April 2014 Net Worth Update

by FI Fighter on May 1, 2014

in Net Worth

We are now 1/3 of the way through 2014, which means that more travel adventures are just around the corner! April marked the start of new journies (post Hawaii), as Seattle was the first place I’ve flown to since Oahu. In May, I’m looking forward to touring the East Coast for the first time and checking out Boston. I’ve always wanted to visit historic Fenway Park, but I’m not sure if I’ll be able to secure a ticket to a Red Sox game… well, without overpaying too much, anyway.

Let’s get to the net worth update for April:

Net Worth

According to Mint, my net worth is currently $633,456.43. This represents an increase of 5.85% from last month ($598,435.05). I’m still using Zillow’s Zestimate to determine the value of my properties.

April_2014_Net_Worth

Cash

I currently have $3,718.75 stashed away in my checking account ($8,154.41 previously). Since I didn’t make any stock purchases or buy another rental property this month, you’re probably wondering where all the money went!?!

No, I didn’t go on a spending spree in Seattle… Those travel hackers can only influence me so much… ;) Rather, I used April as an opportunity to pay down some of my loans (see ‘Properties’ section). Further, Uncle Sam took a HUGE cut and basically nulled out my entire ESPP distribution that I got from work this month. That was a real bummer, especially since I ended up owing more in capital gains than I had budgeted for (thanks mostly to TSLA). This was a big reason why I elected to re-start my 401k contributions this month. I want to lower my taxable income as much as possible!

Other than that, I’m still shuffling some funds (not much this month) into my emergency fund account and trying to build that back up to a decent level. By the end of the year, I would like to have $40,000 in cash reserves… I’m starting to doubt whether or not I’ll be able to hit that number… I’ll still do my best!

Well, hopefully I can get back on track in May. I would still like to purchase an additional rental property sometime later this year.

Loans

I owe the following loans:

Rental Property #1: $227,519.67
Rental Property #2: $227,484.89
Rental Property #3: $116,542.98

Total: $571,547.54

Investments

I currently own no individual stocks. My only investments are in 401k and Roth IRA.

401k: $109,448.95
Roth IRA: $53,887.26
Brokerage: $4.65

Total: $163,340.86

Investments are more or less the same, and holding a constant value. They are increasingly slightly since I’m now investing back in my 401k again. Last month ended with investments valued at $161,017.78. I keep track of my retirement accounts, but the monthly variations, and overall performance mean very little at this point in time.

Properties

According to Zillow, here are the values of each property:

Rental Property #1: $463,106.00
Rental Property #2: $402,068.00
Rental Property #3: $153,962.00
Rental Property #4: $85,824.00
Rental Property #5: $156,382.00

Debt: $33,561.84
Rental Property #4: $63,925.18
Rental Property #5: $125,696.01

Total: $1,038,158.97

Rental Property #1, as always, is fluctuating again this month. For April, it’s down 4.9%, checking in at $463,106.00 and coming in much lower than last month’s value of $485,779.00. Rental Property #2 is finally starting to surge up, rising to $402,068.00 this month, an increase of 10.4% from last month’s value of $364,275.00. The other rentals are all up as well, but just slightly.

As mentioned above, most of my cash this month went towards paying down my debt, or second loan for Rental Property #5. I knocked off about $10,000 this month, and will keep making efforts towards eliminating this loan as quickly as possible. I still owe $33,561.84. Just like last month, the ‘Properties’ tab is again registering over $1,000,000. Nice!

Summary

The total value of all assets now checks in at $1,428,401.61, an increase of 1.6% from last month ($1,405,944.19). I also owe $794,945.18. April was kind of a rough month, but now that tax season is behind us, I’m looking forward to accelerating the progress again. I hope to have enough funds for another downpayment hopefully by the end of June. We shall see!

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{ 26 comments… read them below or add one }

FI PilgrimNo Gravatar May 1, 2014 at 3:53 am

Always incredible to read your updates, great job. It’s tough when taxes hit like that, but it usually means you’ve got some great income coming in!

Reply

FI FighterNo Gravatar May 1, 2014 at 6:48 pm

FI Pilgrim,

Thanks for the support! Yeah, Uncle Sam is going to get his, but I’d much rather be owing him money than for him to be giving me back a massive refund. Like you said, that probably means the investments are doing well! :)

Cheers!

Reply

Jason @ Islands of InvestingNo Gravatar May 1, 2014 at 4:42 am

Wow – it’s amazing seeing that $1 million figure for your properties, and fantastic that you’re planning to keep the momentum going with another potential purchase!

Have a great trip to the East Coast! You live in a pretty awesome part of the world – there is so much to see in the US (Australia is just soooo far away from everywhere – including the US which I love visiting!)

Cheers,

Jason

Reply

FI FighterNo Gravatar May 1, 2014 at 6:49 pm

Jason,

Thanks! I’m really looking forward to the East Coast trip at the end of May. Seeing the $1M figure is pretty cool, kind of surreal even, but it is important to keep the momentum going, like you said.

I would love to make it out to Australia someday in the future! Hopefully it will be possible post FI.

All the best!

Reply

No Nonsense LandlordNo Gravatar May 1, 2014 at 4:50 am

Don’t sweat on the value of the properties too much. Each property i still worth ‘one’ property. If you sell, you have to subtract about 10% for commissions and fees anyway…

Cash flow is more important.

Regarding taxes, have you ever considered moving away from CA, to a less tax intensive state? I am making the consideration about moving out of MN, and I have the cold weather too.

Reply

FI FighterNo Gravatar May 1, 2014 at 6:53 pm

Eric,

You’re right, cash flow is the name of the game. Tracking net worth is just to get a rough idea of what’s going on… of course seeing your assets go up in value is always a great thing.

But in the end, whether my properties are worth $1 or $1M, I wouldn’t know the difference as long as the cash flow stayed the same…

In regards to California, yeah, I may move out to a cheaper state in the future… Well, my first plan is to live cheaply overseas, so I’ll probably figure out what follows at a later time.

All the best!

Reply

JC @ Passive-Income-PursuitNo Gravatar May 1, 2014 at 6:46 am

It’s still amazes me how quickly you built up to $1.4M in assets. Uncle Sam took a bigger bite this year that I thought because we had a lot of moving parts that I thought were accounted for but apparently weren’t. I’m glad to be done with that for another year.

Reply

FI FighterNo Gravatar May 1, 2014 at 6:58 pm

JC,

Yeah, I’m also glad to be done with taxes… It wasn’t much fun this year! ;)

With the assets, yeah the $1.4M figure is surreal, even for me to see. Honestly, a lot of it is just market induced, and anyone (like yourself) who was investing in 2011, 2012, etc. will be sitting on a ton of capital gains…

I got luckier than most b/c I bought two properties in the Bay Area that have each appreciated over $100k each… If you look at the numbers, those two properties alone almost add up to $1M in value… It’s pretty crazy.

But as you and other DGI/REI folks know, financial freedom is attained through cash flow/passive income… Net worth gains are nice, but everything is just paper, unless I find a way to tap into that equity to increase cash flow. That’s where the 1031, or HELOC would come in.

Thanks for stopping by!

Reply

LeighNo Gravatar May 1, 2014 at 7:09 am

Why did you decide to pay down some of your loans this month? I thought you were mostly against paying down rental property loans?

Reply

FI FighterNo Gravatar May 1, 2014 at 7:02 pm

Leigh,

The loan I’m paying down isn’t a 30 year fixed conventional mortgage. It’s a secondary loan and the amount is so small I would rather just close it out sooner than later.

In general, I will not be focused on paying down my 30 year mortgages until after I’ve maxed out my 10 loans… Then I will work hard at paying them down, one at a time…

Cheers!

Reply

Dave @ The New York BudgetNo Gravatar May 1, 2014 at 2:06 pm

End of June is when I plan to start looking again as well!

Great updates – I hope to start my own on my blog at some point this summer!

Reply

FI FighterNo Gravatar May 1, 2014 at 7:04 pm

Dave,

Awesome! Let’s motivate each other in trying to get there :)

Yeah, I’m looking forward to reading your updates! Get on it man!

Take care!

Reply

TraderNo Gravatar May 1, 2014 at 5:50 pm

It’s great to see these update. What do you feel when you finish writing it? Must be a great feeling! Cheers!

Reply

FI FighterNo Gravatar May 1, 2014 at 7:10 pm

Trader,

Thanks! These updates help me track progress, so I do refer back to them from time to time.

Most importantly, I hope readers find them useful… or motivational… or something positive. ;)

Cheers!

Reply

The First Million is the HardestNo Gravatar May 1, 2014 at 6:01 pm

Another solid update! I second JC, it really is incredible how quickly you built up over $1mm in properties. Enjoy your trips, you’ve certainly earned them.

Reply

FI FighterNo Gravatar May 1, 2014 at 7:11 pm

Jay,

Thanks! Appreciate the support.

Yeah, the progress has been kind of surreal, and mostly Fed induced… With the markets sitting so high right now, all my assets are heavily inflated. I’m trying not to read too much into it though, and my main focus is still on the cash flow each month.

All the best!

Reply

Even StevenNo Gravatar May 1, 2014 at 6:18 pm

Any concern about being heavy in real estate or not enough in another area?

Reply

FI FighterNo Gravatar May 1, 2014 at 7:14 pm

Even Steven,

Yeah, a little bit. My main focus in going to be on REI until I max out my 10 loans… After that, I’ll go back to dividend investing.

REI provides a lot of barriers to entry, so it’s better for me to concentrate on that now, while I’m still able to qualify for loans… I feel like I can pick up dividend stocks at anytime later, but it’s going to be real tough to get any kind of loan without a solid W-2 income…

Ultimately, I would like to have real estate, dividend stocks, and the 401k/Roth IRA. That, and of course a lot of cash.

Take care!

Reply

A Frugal Family's JourneyNo Gravatar May 1, 2014 at 9:05 pm

$1 million property portfolio…congrats on reaching that milestone! Great accomplishment considering it looks like almost half of it is equity. The best part about your rental is that someone else is helping you build your equity. Way to go…I wish you nothing but continued success!

Reply

FI FighterNo Gravatar May 5, 2014 at 10:30 pm

AFFJ,

Thanks! I appreciate the support!

Cheers!

Reply

Stefanie @ The Broke and Beautiful LifeNo Gravatar May 2, 2014 at 5:25 am

Definitely walk the Freedom Trail in Boston. It’s great and free!

Reply

FI FighterNo Gravatar May 5, 2014 at 10:30 pm

Stefanie,

Thanks for the suggestion! I’ll have to check that out.

All the best!

Reply

J. MoneyNo Gravatar May 3, 2014 at 10:43 am

You just jumped up a cple spots on the Blogger Net Worth Tracker :)

http://rockstarfinance.com/blogger-net-worths/

And you’re exactly $398 away from jumping up to the next one too! Congrats brotha!

Reply

FI FighterNo Gravatar May 5, 2014 at 10:31 pm

J. Money,

Cool! Haha, not a race, but sure I don’t mind going up a few spots ;)

Thanks for all the awesome things you do!

Reply

dannyNo Gravatar May 6, 2014 at 1:57 am

Keep up the updates!

In some of your previous posts you mentioned that you were in talks with a turnkey company that sold properties in the dallas area. Are you still looking to make a trip down there? how is that going?

Reply

FI FighterNo Gravatar May 13, 2014 at 9:30 am

Danny,

Yes, I still have plans on making it out to Texas later this year. Most likely, it will be in September, after my round the world trip in August.

I will keep you and everyone else posted as it happens. Sorry for the delay… :)

Cheers!

Reply

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