My Next Property – (May 2021 Net Worth Update)

Today marks the 16th month of my net worth series, in which I document my path to reaching 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 Rental Property: Strategies 

My current goal is to buy another property some time in the summer – ideally in June or July. 

Obviously, my main objective is to find a good deal. There are three different avenues I’m considering pursuing: 

Chicago Condo

We would be purchasing this condo as a primary residence. Then, we would be able to rent out the condo we’re currently in.

I would be aiming for another 2 bed, 2 bath condo – ideally in the $125,000 to $170,000 range. 

That way, we would have the option to house hack that property as well, adding another layer of flexibility.

Indianapolis Rental 

Our second option would be to purchase another rental property in Indianapolis. 

The biggest disadvantage to this option is that we wouldn’t qualify for an owner occupied loan, which would generally require less money down with better terms.

However, we could still find some nice fixed rate financing and a cash flowing rental if all goes well.

Chicago Multi-Unit House Hack 

This option would likely be ideal for us: a multi-unit building in Chicago.

Ideally, we would love to have a 3 to 4 unit building. Realistically, this would be in the million dollar range. Our plan would be to live in one unit and rent out the others.

Best case scenario: we would be net neutral on our housing costs, if not cash flowing a little bit each month.

If we go this route, it’ll probably take us a little bit longer to find a good deal. And if we’re going to be taking on this amount of debt, we definitely want to ensure we have some safety nets in place.

Whatever we do, I’ll keep you posted.

Anyways, let’s get into the numbers.

May 2021 Net Worth Numbers

As a reminder, my net worth last month was at $71,528.93.

Assets – May 2021

Assets May 2021

Given that it’s tax season, pretty much all of the changes here are tax related. 

I added some money to our HSA (Health Savings Account) and to our Roth IRA because the contributions for 2020 end in mid-May. 

We’re receiving a nice $3,000 tax refund, which we should be receiving soon. 

I’m also approaching nearly $100,000 in stock holdings. Even though that’s invested, I could sell these stocks if I wanted to. Additionally, I could borrow against them using a margin loan. So they’re relatively liquid.

In total, we have $399,734.09 in assets.

Liabilities – May 2021

Liabilities May 2021

My wife’s summer tuition is now accruing. Spring tuition was moved into the “Student Loans” pile. 

We paid down a little more of the HELOC, which we can re-draw if we wanted to.

Otherwise, there isn’t much of anything new to note here.

In total, our liabilities this month are $324,779.36.

My Net Worth – May 2021

All in all, that leaves us with $74,954.73 in net worth. 

That’s an increase of $3,425.80 from last month.

Our debt ratio is 81.25%

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

What’s Next?

In other major news, I passed my bar exam and I will be officially sworn in on May 13th, 2021!

Here’s a reaction video I did when opening my bar exam results:

This will be great for us financially since I can switch to full-time as soon as I’m sworn in. I’m currently working as a part-time real estate law clerk.

On top of being able to focus more on paying down debt, I will also have a much easier time buying another piece of real estate in the future.

As I mentioned, I’m weighing three strategies when it comes to my next real estate investment: a second Chicago condo, a second Indianapolis rental, and a Chicago multi-unit property

Regardless of which strategy we go with, I think the big highlight this summer will be closing on another property.

And my career as an attorney will officially begin.

In any case, I will continue with my monthly updates throughout the process. Until next time!

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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