Welcome Baby FIGUY1!
Baby FIGUY1 was born, yay! That’s my excuse for getting this article out so late. Anyways, I originally predicted the number to be flat or even fall below the $100k mark for the month due to a high level of expected expenses. Based on this result, I’ve decided to change my 2016 target upwards to $120k net worth!
The Numbers in Summary
Other Assets: $5,303
Yikes! It isn’t as bad as it looks, I swear. $1,000 in the red is due to pulling cash out to pay for a fixer-upper car. I put a place holder in assets showing a $1,000 car for now until I get it up and running. In effect, I’m actually down just $2,063.55 cash. Most of this negative cash flow can be attributed to the rental property:
- Rental September Net: $1657.50
- Rental Income:
- $725 rent – Duplex has 1 vacant unit
- Rental Expenses:
- $62.50 management fees
- $750 turnover cost – Painted the whole unit in addition to standard turnover
- $420 Security Deposit Return – Took out half the cost to paint.
- Note to self: I will eventually remove this from net worth because it is not co-mingled with my funds.
- $1150 Regular Mortgage Payment. Margins here are less than perfect even fully rented.
Other Notable September Expenses:
- $750 deposit for graduate school
- $400 travel cost to friend’s wedding
Standard retirement contributions plus about $30 at Acorns.
- Paid off my Chase Freedom card
- Paid off my Chase Sapphire Preferred entirely and I received my 50,000 sign-up bonus points! Yay for Travel Hacking!
- Mrs. FIGUY1 now has the Chase Sapphire Reserved and we’re accumulating spend towards her sign-up extremely quickly due to some sizable expenses coming through this month. I will likely be signing up for the CSR myself in October in order to capture some of our medical bills, insurance, and maintenance costs on the car project.
Nothing exciting here except that we’re tracking perfectly to our debt plan!
This should remain steady every month and includes principal pay down on both the rental and primary residence, each on 30 year 3.65% mortgages.
OTHER ASSETS: $5,303
Personal Residence is consistently rising in value, but not at an alarming pace.
$1000 place holder added for the new fixer-upper car until I have it up and running.
Takeaway: Cash flow Struggles.
- Baby was born!
- Rental is going through the toughest turnover period I’ve seen in my short 4 years as a landlord. The addition of tons of units developed this year in our city created a small surplus that has definitely affected the rates I can charge and the speed at which I can refill a unit. This isn’t great, but my unit lends itself nicely to long term tenants and so that is my target.
Next Month: Continuing to battle cash flow.
- The rental will be a huge factor .
- Medical bills are starting to come through.
- Maintenance costs on fixer-upper will mount.
- Possible small windfall in the case I sell my car.