Net Worth Update #3 - $500K Asset Increase!

I took a long break from the blog recently due the purchase of our first investment property as well as our pandemic response at my job. Things have been pretty stressful, but I am so grateful to report that financially, we have thrived over the past year. 

Our assets have grown by $482K since our last net work report, and we’re now close to the $1M mark in assets. Our liabilities did grow proportionally (by $245K) since most of our assets are in leveraged real estate holdings. Still, we’ve seen a significant bump in our net worth, ballooning by nearly ¼ million dollars to a new high of $346,686. We are stoked!

Here are the primary drivers behind our big growth over the last year:

Real Estate:

We bought our first investment property and hit a huge home run. The whole process was described on a recent blog post here. 

While we were able to remove over $80K of capital from the investment property after rehabbing it, it’s worth mentioning that we still have $65K in equity left on that property. You have to love real estate!

Stocks:

We took the proceeds from the above real estate deal and invested it all in the stock market, primarily in beat down oil stocks and other value plays. We did this in October 2020 and those holdings are already up nearly 35% + about $1,500 in dividends. The total portfolio is now worth north of $125K. This money is temporarily parked here, though, as the goal is to buy additional real estate properties.

“Found” Retirement Money:

About $60K from the growth in our new worth came from an account that we just weren’t tracking at all. My wife is a money hoarder, and she used to maximize retirement contributions before she stopped working to become a stay at home mom in 2015. Sometime in the spring we realized that those funds were still seating at the retirement vendor through her old employer. We rolled those funds over and added it to our monthly tracker now. While we can’t use those funds for much, we have found that real estate lenders will accept them as “reserve” funds when lending to us on investment properties, which has been a nice perk.  

We are excited to update these reports more frequently. The goal is $1M net worth, and we are already ⅓ of the way there!