Welcome to Frankie’s February 2019 net worth report. Like other financial bloggers, I think it’s tracking income and net worth is a good idea to stay motivated and check in on my financial goals.
I use actual, real-life numbers, and my long-term goal is to reach $1 million in net worth. This year, I’m striving to reach the half-million mark (hopefully by mid-year).
Check out last month’s report.
Here’s a recap of my passive income and net worth for February 2019. I track everything on Personal Capital, which is entirely free to use. I highly recommend using Personal Capital’s free tools to track your net worth if you don’t already.
Net Worth: $470,932 (+$4,202 from January).
It was a good month overall.
Last month was a bigger month though, as I got a huge boost from my first rental property purchase. I bought a single family turnkey rental property on Roofstock. The property cost me $117,000, but it actually ending up getting appraised for $130,000, so I think it was a good buy.
This deal created $13,000 in “free” equity, which I was not really expecting. I did not have to make any repairs to the property as it a was turn-key deal.
This month, the focus has been on completing my first-ever BRRRR real estate deal. I closed on a 3-bed, 2-bath single family home in Fayetteville, N.C. The house purchase plus repairs cost $88,000with an ARV estimated at $116,000.
Right now, I’m valuing the house at $88,000. I expect it will appraise for more than that though.
The house is currently being worked on by contractors. Interior paint is complete, but the roof is only half done, and there’s a few other repairs needed.
Also, I spent some cash this month on my own house as we’re in the process of remodeling our kitchen on our primary home. T
Last week, we purchased cabinets ($8,000) and will likely spend another $10,000 – $12,000 to complete the remodel (countertops, new stovetop, installation, etc.) Our kitchen is really old and needs a remodel badly. Hopefully, it comes out nice!
Net worth breakdown
Cash: $72,220 (-$87,755 from January).
Cash is down a huge amount from last month. That’s because I’m in the middle of my first BRRRR deal that cost me $88,000 investment up front.
If the deal goes smoothly, I expect to get most (if not all) of the cash back through a cash-out refinance via delayed financing.
The way it works is, I can get a mortgage based on 75% of the after-repair value of the home, so if it appraises for $117,000, I can get approximately $88,000 of cash out of the deal (all of my investment). My hope is the house appraises for at least $110,000 ($82,500 cash out).
Once this deal is finished and the money is back in my bank account (and the house is rented), the plan is to invest in real estate via turn-key real estate deal on Roofstock, through a realtor, or do another BRRRR.
I’m leaning towards doing another BRRRR, but we’ll see how this deal goes first.
Home equity (primary home): $65,418 (unchanged).
I don’t make our mortgage payment until the 10th of the month, so this amount has not changed since January.
Our primary residence was bought 2 years ago and has appreciated a little bit since then. We put 10% down.
We still pay $85/mo in private mortgage insurance. I am going to try to get it eliminated soon via a broker price opinion. It will need to appraise well. I plan on doing this after the kitchen remodel.
Investments: $198,613 (+$2,383).
This includes the following:
Stock portfolio #1: $35,308. This is my high-yield portfolio, which is comprised mainly of Master Limited Partnerships (MLPs). I pulled out $2,500 in cash out of this portfolio recently and transferred it to my Roth IRA.
Check out my MLP portfolio holdings.
Stock portfolio #2: $45,368. This portfolio is almost 100% precious metals stocks. I am bullish on gold prices in particular as I think inflation will take off in the U.S. over the next few years.
This is a riskier investment portfolio, but has big upside and it is money I am willing to risk. I have 10% cash in the portfolio at the moment in the portfolio. I’m not adding more money to it currently.
Roth IRA: $20,389. This portfolio contains an ETF, plus stock in Apple and a real estate investment trust called Long-Term Care Properties (LTC). I transferred some money into this portfolio. I mostly don’t touch this IRA, but I will look to contribute more money in 2019.
Fidelity IRA: $33,712. Retirement portfolio that contains a target index fund and a few other investments. Stocks have been doing well lately.
Fidelity IRA 2: $17,580. This is a target date retirement fund.
Pershing IRA: $7,631. Another IRA from a previous job.
Company stock options: $12,530.
February Cash Flow: $6,047
Total cash flow is all income minus expenses for February.
My income and expenses were definitely out of whack this month because of the BRRRR deal and our kitchen remodel, so I don’t think it’s worth mentioning all of the exact numbers.
When factoring in rental income and income from jobs and investments, income hit $16,000 in February. However, expenses were also very high at $10,390, mainly because of the cabinet purchases.
January Passive Income: $811 (+$407)
Real estate rental property #1: $130 (unchanged)
This is the turnkey rental property I bought off of Roofstock. It is Milwaukee 2-bed house that is rented out for $1,300.
It was another smooth month. Rent has been paid on time and no maintenance requests yet. With mortgage, taxes and insurance costing $800/mo, my cash flow was positive $370 for the month, but when factoring in repairs, maintenance and vacancy budget items, it was $130.
Stock dividends: $598 (+$533)
This is up huge from last month. Why? A lot of my stocks happened to pay their quarterly dividend in February.
The biggest contributions came from my high-yield MLP Portfolio. Alliance Resource Partners paid me a $133.32 distribution. I also received $79 from Enterprise Product Partners, $77 from MPLX, $71 from Phillips 66 Partners, and $48 from Energy Transfer Partners.
These MLPs also have favorable tax treatment: as a limited partner, I do not have to pay taxes on these distributions.
CIT savings account income: $83.90 (-$125.84).
This is down from last month as I took out $88,000 from this savings account to complete the BRRRR deal. I was earning over 2% interest on this savings account.
FF Blog: $0.
I don’t expect to make any money from this blog in 2019. My goal is to build a decent following and provide good content. Page views are up from January, which I think is a positive sign. I have a long way to go though!
Blogger Income Reports to Follow
I would not be doing these reports if not for a few inspirational personal finance bloggers. These are my three favorite financial bloggers to follow for 2019. I’ve found their income and net worth reports to be very motivating!
- RetireBy40: Joe Udo achieved financial independence at the ripe age of 38. His financial update posts touch upon his passive income, savings and investment goals. Last year, he achieved more than $56,000 in passive income, which nearly covered all of his expenses. I hope to achieve similar passive income numbers in the future!
- Cash Flow Diaries: Alexander at Cash Flow Diaires has some of the most inspirational net worth updates. He’s one personal finance blogger I’ve found who has a built a significant real estate investment porfolio, with his properties mainly in Indianapolis (a great city for rentals in my opinion). As of his last update, he owns 9 rental properties and is flipping two others.
- Gen Y Finance Guy: I’ve been following Dom’s financial reports for a year now, and I can tell you that he is an overachiever for sure! He started 2015 with a net worth less than $200,000, and in just four years, has eclipsed the $1 million mark. He’s done a great job turning his high income into wealth, and I appreciate the full transparency of his posts.
[Disclosure: This post is for informational or educational purposes only and should not be construed as investing advice. The post may contain affiliate links.]