Alright, we are now in the month of August! My next vacation is just around the corner, and I only have four more days of work left! You know, I’ve been counting down the days towards this adventure since my last vacation to Maui ended in early January. Hopefully, I’ll arrive back in the states refreshed in September, and ready to rock n’ roll! There’s been a lot of progress made this year, so let’s keep going strong.
“Work hard and play hard?” In the short-term, yeah, sure that makes some sense… However, for the long haul, I much prefer the motto, “Work smart, and then play all you want!!” Keep on fighting, and once early FI is reached, you can play in the sun all day long. And who doesn’t want that?
Enough rambling, let’s get to the juicy details!
According to Mint, my net worth is currently $718,780.24. This represents an increase of 3.64% from last month ($693,514.01). I’m still using Zillow’s Zestimate to determine the value of my properties.
I currently have $20,415.29 stashed away in my checking account ($23,478.06 previously). These are funds I have readily available for investing. As it turns out, 3 parters and I just recently won a deal for a Bay Area property this past week, so I will need to transfer this balance (and an additional $5,000) to close escrow next month.
Cash is down slightly this month since I used a large portion of it to pay off some debt (see below). That, and I moved over a tiny bit of cash to my emergency fund, which is not accounted for in the Net Worth updates. As has been mentioned before, one of my goals this year is to rebuild a cash buffer of $40,000 by the end of the year. I currently have an emergency fund of roughly $15,000… Not much, I know, so I will need to work on beefing this up some more over the next few months.
I owe the following loans:
Rental Property #1: $225,863.44
Rental Property #2: $225,556.78
Rental Property #3: $115,893.40
I currently own no individual stocks. My only investments are in 401k and Roth IRA.
Roth IRA: $55,224.93
Investments are down slightly this month. The 401k is up only because I am making regular contributions each pay period, but the Roth IRA is down, which suggests that the broader stock market is down this month. Although we are all probably getting used to the market rising (and loving it!), of course, things just can’t just keep going up each and every month, unfortunately… Last month ended with investments valued at $174,256.58. I keep track of my retirement accounts, but the monthly variations and overall performance mean very little at this point in time.
According to Zillow, here are the values of each property:
Rental Property #1: $417,410.00
Rental Property #2: $460,869.00
Rental Property #3: $155,222.00
Rental Property #4: $90,464.00
Rental Property #5: $171,736.00
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 #4: $63,758.01
Rental Property #5: $125,080.41
Most of the rentals are holding steady in value. Per usual, Rental Property #1 and Rental Property #2 are the two fluctuating the most. Rental Property #1 keeps on dropping in value, and is now very far removed from its peak of $480,000, set earlier this year. My own guess is that it’s probably worth about $470,000 or so. Zillow is very far off on this one, for sure. Oh well, what can you do? Rental Property #2 rose to $460,869.00 this month, an increase of 4.39% from last month’s value of $441,477.00. Seems kind of high to me… Oh Zillow, I will never figure out how your algorithm works…
For this month, I paid down a ton of debt! The current amount due is $14,256.84. My previous balance was $31,477.84. This is where the bulk of my ESPP, income, and cash flow went towards this month. I hope to have the remainder of this loan knocked out by the end of the year, baring any unplanned investment moves which could force me to allocate funds elsewhere. Nevertheless, I’m feeling good with the progress made towards paying down this “minor” loan. It was a small loan to start off with, needed to help close Rental Property #5, so I’m more than comfortable with getting rid of it for good!
The total value of all assets now checks in at $1,489,563.60, an increase of 0.45% from last month ($1,482,903.64). I also owe $770,783.36.
Time keeps marching on! Overall, I’m very pleased with the progress made, and am glad that I now have another opportunity to decompress. These little mini vacations really do make a tremendous difference! I get to escape the day-to-day monotony of work, and experience something completely brand new. In a few days, I will be off to Japan!
New culture, new language, new sights, sounds, and food to try! Can’t wait! This is what life is all about!