January 1 Check In

We rang in the New Year today with a CrossFit workout, great breakfast with friends, and some goal setting!

We also did our annual net worth calculation: $695,920!

It was interesting to see how strong the market performed this past year and how quickly the growth compounds. We invested approximately $50k of that $170k, so that represents around $120k of growth. Pretty strong.

We are also in the midst of closing on our second rental property, a duplex in Detroit. We wired our $1000 earnest money and are waiting on the paperwork to finalize the deal. This will be our first duplex and is a fixer-upper. We intend to put about another $10-15K into a new roof and two furnaces. It currently has two long term tenants paying $650 a month. We don’t have any intention of replacing them or raising the rent. The numbers make sense even at the $650 per tenant per month figure.

Some might say that it would be wise to bump the tenants out, do the remodel, and find new tenants at around $800 a month, but this gets back to our goals and core values. We are not doing this to get rich as quickly as possible. We pursue rental properties as a means to financial freedom and are grateful that we do not need to fight to get top dollar.

Hoping to close by early January and transfer management over to our property manager.