I Found My Next Deal?! – (July 2021 Net Worth Update)

Today marks the 18th month in my net worth series, and I’ve been documenting my path towards two goals:

  • $30,000 in annual passive income by 2025
  • $1 million in net worth by 2027

If you’re interested in real-time updates on the numbers, you can check out my net worth tracker, which I update on the 1st of every month.

My Next Real Estate Deal

If you’ve been following this series, you know that I’ve been on the hunt for another real estate investment property.

This one will likely start out as a primary residence which I will turn into a rental after a year or so.

I’ve been making offers consistently over the past couple of weeks and I finally got one to stick. I’ve tried to make it a point to make at least one offer per day. I’m representing myself as the buyer’s agent on the deal (since I have my license in Illinois).

As of yesterday, I am under contract for a townhome in Chicago.

I’m going to use owner occupied financing, which would mean I’d only have to put 5% down with somewhere around a 3% annual interest rate.

I’m going for a buy-and-hold deal in this case. As long as rents don’t collapse, I should be in a pretty good position in the event that we move out, especially given how little cash I’d have to bring to the deal.

I’ll keep you posted on that one! We’re set to close by the end of the month.

For now, let’s get into the numbers.

July 2021 Net Worth Numbers

As a reminder, my net worth last month was at $76,321.41.

Assets – July 2021

Assets July 2021

We have a bit more cash than we did last month. I want to make sure I’m ready to go for any potential closing costs. A lot of the down payment and any initial rehab should be coming from a margin loan from my M1 Finance portfolio.

Now that I have full-time income, I would be able to replenish cash more quickly.

I lost a few grand in the market over this past month, but I was able to add a few grand as well.

Because my portfolio is relatively small, every new paycheck is going to make a big difference – more so than it will years down the line.

My total stock portfolio is still around $100,000, which I plan on leveraging for my next real estate deal.

I’m adding roughly $1,000 to my 401k monthly right now. I might decrease that in the future in the event that I need more cash for other investments. For now, I’ll take the tax write off.

Finally, every month, I plan on adding about $200 to my cryptocurrency portfolio. This is split fairly evenly between Bitcoin and Ethereum. This is a speculative part of my portfolio and nothing more.

We’ll see what happens.

This leaves our assets at $416,145.21.

Liabilities – July 2021 

Liabilities July 2021

I have a fairly substantial credit card charge. This is not because I’m behind on anything, but just because I recently put down a deposit for a bachelor party that I’m helping to organize for one of my good friends. It will get paid down before any interest gets charged.

My wife’s tuition payments have begun to slow. She’s in her last year of school to become an audiologist, and the third year is significantly less expensive than the first two.

Meanwhile, there’s really no incentive to pay the student loans down right now due to the interest freeze. So we’re putting our extra cash elsewhere.

When we have excess cash, it’s generally going either to investing assets or debt paydown. In any event, we could always liquidate those assets to pay down debts.

Our expenses are relatively low, so we have flexibility with how we can use that extra cash.

All told, our liabilities this month are $336,133.60.

My Net Worth – July 2021 

That leaves us with $80,011.61 in net worth.

That’s a net gain of $3,690.20 from last month.

Our debt ratio is 80.77%.

And our passive income remains at about $350 per month.

What’s Next?

If we do end up closing on the townhome deal, we would rent out our current place. That income would cover all of the expenses for our current residence, on top of providing some extra cash flow to go towards other investments.

Within the next few days, we’ll be done with inspection on the property and we should know whether or not this deal will go through. If all goes well, closing is set for mid-July.

By the next update, we might have another property in our portfolio!

This website, and any communication stemming from it, while hopefully informative, should not be taken as financial or legal advice. Assume all links are affiliate links. I am an Amazon affiliate.

Jack Duffley

Jack Duffley is a real estate investor and attorney based in Houston, TX.

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