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.
My approach to real estate investing has been to focus on a few units and self manage them. At this point I’ve had a fair amount of experience managing my own rentals. I bought my duplex when I was 23, which was 6 years ago now. Until this month my personal plans had never been significantly disrupted due to issues at the rentals.
My tenant called me at 11:30, not once, but twice – the second time to leave a message. I didn’t get it until the next morning at which point I learned about a sewer backup in my latest rental, the one we paid off the month prior. This is the house that just keeps on giving. I’ve spent more time at this rental than all the rest combined. Some projects include replacing a toilet, some plumbing work and a few other miscellaneous issues.
So we left our vacation spot first thing the next morning and went into the situation prepared. We both went in prepared for battle in our worst scrubs and Miss QCI donning her puddle boots. After all, you never know how serious an issue is until you actually arrive. We arrived at the rental to a giant pile of…
The tenant had cleaned up whatever mess was made. Bleach had already been applied and there wasn’t much left for us to do. We hooked up a dehumidifier and had a fan to dry out any moisture that remained. Since our tenant had cleaned it all up we volunteered to empty the mixture he had collected with a wet shop vacuum. The next step was to resolve the underlying problem of the backup.
This is the same floor drain we just had replaced (featured in a previous net worth update) so I figured the issue had to be elsewhere. My usual go-to for sewer issues is a company called Roto Rooter, but they didn’t have a service person working the weekend. I found a local mom and pop sewer service and gave them a call and couldn’t have been more impressed with their service. The owner worked for the our city for decades solving issues like this and was extremely thorough. He first cleared the sewer line from the clean out to the street (tree roots) and then worked backwards to make sure the rest of the line was clear (more tree roots). Problem solved! Total cost: $195.
Although our plans for this particular weekend had changed we still made the most of it. We got to do some unexpected fun activities since the sewer issue only took a few hours of our time in total.
But the rental work didn’t stop there…the following week we received a significant amount of rain which resulted in water leaking into one of the bedrooms at the same house. Since we are a one car family I loaded up our Rad Power Bikes Rad Wagon (pictured above) with a ladder and fan. After examining the attic it was obvious that the water was coming through around the chimney. We may need to do some additional work on the chimney but for now the work my roofer did is holding. I’ll be continuing to monitor the attic as we receive more rain.
Besides our rental work we also got to enjoy strawberry picking, kayaking, swimming, biking, trying out virtual reality (!!!) and boating. We also crossed 700 miles on our Rad Wagon!
In our net worth update below you’ll notice I updated our mortgage balances on our 3 properties.
Mr.QCI Net Worth
Cash: ~$8,000 (-$1,500)
P2P Lending: $5,437 (-$1,569) – I am reducing my allocation to p2p lending
401k: $82,384 (+$2,924)
Vanguard Rollover IRA: $87,397 (+$223)
Vanguard Roth: $45,268 (+$3,719)
Vanguard Taxable: $119,753 (-$2,514)
Individual Stocks/Other Investments: $1,683 (-$365)
HSA (amount invested only): $22,254 (-$107)
Total Investments: $364,176 (+$2,311)
Assets: $475,000 – This is the estimated value of my four 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 (3 Mortgages): $239,848 (-$5,722) – (Updated: June 2018 – I plan to update this every 6 months)
Net Worth: $607,328 (+$6,533)
Miss QCI Net Worth
Cash: ~$2,000 (-$2,000)
Vanguard Roth IRA: $55,571 (-$5)
Rollover IRA: $101,078 (-$2,500)
Vanguard Taxable: $94,045 $(+$4,033)
Total Investments: $250,694 (+$1,528)
Net Worth: $252,694 (-$472)
Investments: $614,870 (+$3,839)
Projected retirement income (assuming 4% rule): $24,594/year
Net Worth: $860,022 (+$6,061)