One of the main purposes of this blog is for me to track my progress to financial independence which I am well on my way to achieving. Each month I share the details of all investment accounts and the changes from the previous month.
Note: if you’re just joining us you can view my most recent net worth update here.
Remember when I said last month that Miss QCI was looking into future employment options and she politely declined some part time hours at a group home? Well the plot thickened this month when the owner reached out stating that some circumstances had changed. This was the text message Miss QCI received:
Hi REDACTED. Due to unfortunate circumstances I am in need of a person to work with clients and do some admin and paperwork type stuff. Wonder if you would consider a figure that we could discuss that would make it worth your while to help us out?
With her interest piqued, Miss QCI reached out to discuss further. While this is a job she would likely love, the salaries for people who work at group homes aren’t exactly stellar and we aren’t quite ready to pull the trigger on part-time work. When Miss QCI told the owner her current hourly rate he didn’t hesitate. She is still awaiting final details, but this could mean she could pull the trigger on leaving the cubicle forever as soon as January 1, 2017 (!?!). More to come, but this just shows the power of being in a strong negotiating position…
In other exciting news I closed on our last rental this month! I have a lot to say about my most recent single family rental which I hope to outline in a lengthy series of posts. I learned a lot from my most recent transaction and reflected a lot on my real estate investing strategy. Since I know many people are interested in the numbers, here they are:
Purchase price: $80,000
Down payment/loan terms: $35,000 down payment/$45,000 private loan(!) @ 4.5% for 10 years ($466 monthly payment)
Expected rent: $825 (current rent: $700 for 3 months max)
Yearly property taxes/insurance: $2450
The homeowner immediately became a tenant as they look for a new home. It was pretty nice to receive rent immediately as a credit at closing. In return they received discounted rent for 3 months. At this point we plan to pay off this loan as soon as possible given our total debt is near $300,000 across 4 properties.
Other highlights for the month include fall sunsets, a campfire, Miss QCI babysitting for several overnights ($750 in total income), pumpkin carving and biking.
Mr.QCI Net Worth
Cash: ~$4,000 (-$27,000) – I put $35k down on our rental property.
P2P Lending: $12,969 (-$1,779) – I am reducing my allocation to p2p which will be directed towards paying off my new rental property)
401k: $66,874 (+$2,963)
Vanguard Rollover IRA: $82,825 (+$864)
Vanguard Roth: $37,041 (+$609)
Vanguard Taxable: $118,987 (+$2,193)
Individual Stocks/Other Investments: $2,298 (+$64)
HSA (amount invested only): 20,795 (+$1,040) – I no longer have a HDHP as of October 1, 2017 so I will no longer be making contributions to this account.
Total Investments: $341,789 (+$5,954)
Assets: $475,000 (+$80,000, new rental) – This is the estimated value of my properties based on the purchase price and some appreciation our area has seen over the past few years and includes sweat equity. You can see my real estate holdings here.
Liabilities (4 Mortgages): $292,221 (+45,000, new loan) (Updated: July 2017 – I plan to update this every 6 months or so, but I pay down about $10,000 of debt every year)
Net Worth: $528,568 (+$13,954)
Miss QCI Net Worth
Cash: ~$8,000 (+$2,000)
401k: $94,724 (+$3,624)
Vanguard Roth IRA: $34,903 (+$468)
Rollover IRA: $4,602 (+$75)
Vanguard Taxable: $74,540 (+$1,241)
Total Investments: $208,769 (+$5,408)
Net Worth: $216,769 (+$7,408)
Miss QCI, my wonderful significant other continues to crush it as well. She puts 50% of her income into 401k (the max allowed by the company) and still has room to invest in a taxable account. The company she works for now offers after tax contributions which will allow her to roll over those after tax contributions into a Roth IRA once she leaves the company. I learned about this from the MadFientist who has been a great resource over the years.
Investments (what really matters): $550,558 (+$11,362)
Projected retirement income (assuming 4% rule): $22,022/year
Net Worth: $745,337 (+$21,362)