Net Worth Update: $50,070

I Fell Off the Net Worth Reporting Wagon for 5 Months!

It didn’t seem like it’s been that long. Apparently, this is the first of 2018 and I’m totally not prepared for it to be momentous.

As I said, I bought a house. And not just any house, a three family house which will hopefully turn out to be a sound investment. Needless to say, my first foray into multi-family real estate has sucked up a lot more time and energy than originally anticipated. It’s cut into my time for other things I care about, like writing here.

Whoever first decided that real estate investing is a passive activity was insane. Also, I bet they didn’t get called “the worst landlord in the universe” about a month into being a landlord. That’s a few stories for another day. Let’s get to the numbers!

Where’s the House?

Did you catch there’s no house listed on my net worth estimator to date? I just added the personal loan we used to help ensure we had adequate cash to purchase. The house finances are complicated. Those will ultimately be reported on a separate profit and loss statement. Eventually, any upside or downside will be added to my net worth calculation. I’ll likely do that 1x a year. For now, I’m showing it as $0 and leaving it off the spreadsheet. 

Whut!? Another Credit Card?

Yes. Yes we did that. Zero percent interest baby. We had just signed a purchase and sale agreement for a house. It seemed like a smart move to give ourselves the flexibility to retain more cash over the next 12 months. Hopefully we don’t fall into a credit card debt trap. As of right now, we should be OK. I took this risk because the risk of not having cash liquidity to weather the first few months of home ownership seemed riskier. 

Your Net Worth Dropped Over $35,000?

Yep. Our net worth now shows as $35,777.09 less than where we were at in December. We weren’t decimated by a stock market drop. That reflects we used some money to buy our house. We actually used more than $35,000 to purchase the house, but since our investments kept growing while we were busy learning about lien subordination agreements, our net worth didn’t drop as much.

Back on the Wagon, I Promise

There’s still a ton of work to do with the house. Setting up new accounts, bookkeeping, maintenance, repairs, property management, moving, all are going to suck up a lot of my time. But, I promise I will find the time to be better about tracking where the money goes and reporting on it!