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Networth at end of year 2014-interesting results

December 23rd, 2014 at 02:14 pm

hi all

This is the first of probably a few posts as I go through the numbers

General results this year

1. $40,207 total savings (went to Roth, rentals, emergency fund and investment savings) .. still .. wow.. lot to save!
2. $249,882 increase in networth off of last year-mostly from primary home ownership and rentals
3. only $1099 OVER yearly budget for rentals for maintenance/repair and vacancy budget. BUT did lots of long term repair items this year.
4. $31,595 in long term improvement to rentals-includes 2 new roofs, fixing 2 roofs, water fix at that one house, and updating 2 homes and updating 2 3 units
5. $220 DECREASE in negative cash flow over last year on the rentals
6. ABOVE decrease is primarily in 6 homes. 3 units had INCREASED negative cash flow to budget

Will study some more and list accomplishments. trying to diary the journey. this was a big year..

Set some new financial goals to the left

I get my next free and clear house 2/2016

My main goals continue to be to smooth out the rentals, keep my job and have enough cash reserves. there is no leeway in 6 homes/3 units payments and the deal was signed assuming I would NOT have a primary mortgage payment until 2016 or later. That is why things are so much tighter than expected.

Need to rebuild rental emergency fund to $15k asap and considering increasing the personal (lose my job) fund to 4 months which would be $14780. 5 months is $18475

Need to sell this Tahoe

Rescue interested in the cage bank has not been in touch lately and I am thinking they are struggling to get the funds. I put in a call today.


4 Responses to “Networth at end of year 2014-interesting results”

  1. Another Reader Says:

    Take the CarMax offer or lower the price on the Tahoe. Do it while the market for these cars is strong (low gas prices). Selling that car will give you a much bigger cushion.

    Look at what your net worth would be if you paid off all the debt. In your shoes, I would work on a long term plan to do exactly that, along with fully funding my retirement accounts every year along the way.

    My plan for 2015 involves paying down debt while simultaneously accumulating cash reserves. Each paid off loan is one less piece of the risk puzzle and a large cash reserve is security. Extra cash can be used to buy any assets that go on sale as well.

  2. Rachael777 Says:

    Thanks for the input.. you say things so much more succinctly than I.. " pay down debt while simultaneously accumulating assets" .. my plan too.. right now the 6 homes will be paid for 4/2018 and if I apply the rents for 10 months to the 3 units.. they will be paid off 5/2019 or sooner (dependent on rents). I will sell the Tahoe and the plan calls to fully fund the Roth and retirement each year. I am also calling for savings on TOP of that. insane. All I can think of to do to expedite things is to come up with $100k at the end of next year by doing something 'out of the box'. The out of the box thing I am looking at (have not done enough research) is a possible short sale flip or just a flip a house for a finders fee (less $ need to do several) . A guy I know made over $150k on a short sale in Barrington .. sold house this month..(higher end suburb out here). Obviously not all short sales are as lucrative but if I had bought MY house on a short sale and flipped it I could have made over $100k cash too. So something to think about. I have some knowledge on hard money now and have some folks who I can 'look over their shoulder with'. Right now, I am trying to calm down the rentals and the job but going to look at that among other out of the box things. Be great to pay off the 6 homes at the end of next year. Can you imagine? FREEDOM.. in a lot of ways.. I am going to create a vision board too.. with that and other things on it. Smile

  3. Rachael777 Says:

    with $119k. I can pay off the homes at the end of next year! (clarifying the above)

  4. LivingAlmostLarge Says:

    Rachel, did you have a lot of experience finding these sort of RE deals and getting into them? Did you know what you were getting into before signing? From reading your posts its seems like this is not your first go around. How did you gain experience and get into RE investment? What do you recommend people interested in getting into this sort of RE landlording/investing?

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