June 2012 Net Worth Update (+$11,674)

Highlights for June

We like to take advantage of 0% APR balance transfers and other credit card offers for free money. We are actively looking at taking advantage of new credit card arbitrage opportunities.
Our properties are listed on our balance sheet based on their cost basis, not current market value. I believe real estate is too illiquid to list based on recent sale transactions. For those interested our June Zillow property estimates are: $198,800; $131,000; $280,300; and $224,900
We continue to focus our free cash flow in 2 areas: rebuilding our cash position and paying off rental #1 primary mortgage to improve our monthly cash flow.
June was pretty flat as far as our investments go.
I took a last minute business trip at the end of June
We started to work on refinancing our latest investment property with a no closing cost loan to shave 0.5% off our interest rate, but ran into a stumbling block regarding flood certification and shelfvd the refinancing for now. Still not sure how to get resolved, but it turns out the property is in the FEMA flood zone, but that was missed during the original purchase of the propety.
In preparations for Baby #2 we purchased a sleeper sofa (~$800) in June as we are converting our guest room into a nursery.

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Comments (4)

I'm sure you've already covered this in a previous posting, but can you explain the difference between your "Net Worth" and the "2m Progress"?

Have you considered posting a comparative Income Statement (percentages, not numbers)? It doesn't have to be exact, but I'd be interested to know what your overall savings rate is.

I would also be interested in seeing the interest rate you're paying on your real estate. I would think that you'd want to pay off house #2 because the balance is so little (you know, get it out of the way). But I suspect you're paying off #1 because it is a more expensive loan. Correct?

I love how you've been able to track your investments. I've done something similar using google docs because it is easy and updates instantly. The problem is that I have to enter dividends manually. There must be an easier way to track a portfolio. Historically, I've been a proponent of ETFs. I figure with their broad base, low cost and liquidity that I can just be a free rider on the risk premium. However, the more I think about that, the more I think my reasoning may be flawed. It can't be a sure-thing...

A stylistic suggestion on your net worth updates: Round to whole dollars and drop the pennies (when they show up).

Congrats on the expectation of #2 for you. We just had our first. I'm not sure if this is good for this blog's marketing efforts, but I suspect that most of your readers are all of similar ages and life-stages.

Keep up the good work. I enjoy following.

Posted by Robert | July 19, 2012 7:17 PM

Robert,
Thanks for the comment. The $2mill goal excludes the net value of our primary residence as our financial goal is to hit $2million net worth plus our primary residence.

House #2 is effectively paid off - all that remains is an equity line with the ~$7k. Our primary focus is to paydown the primary mortgage on house #1 which has ~$43k balance and a 5.6% rate. The primary motivation is to improve our overall monthly cash flow.

Posted by 2million | July 19, 2012 9:30 PM

I been following your site for awhile. Its good to see how you guys have slowly but surely progressed towards that 2mil dollar goal.

I was hoping you can help me with a question as you have experience in this.

I currently have a mortgage 466k left with a 4.85% interest rate with around 26 yrs left on it. Its a FHA loan. I been looking at refinancing and its confusing where to start as you have all these online sites/banks advertising different things. Ideally I am looking for a 30 yr no closing cost refinance. Also I am not sure how long I am going to stay in this house as I could be moving for work in a yr so not sure if its still worth it to do it. Any advice?

Thank you

Posted by Dan | July 31, 2012 2:45 AM

Dan,
Not sure what help your looking for -- how to find a no closing cost mortgage? Im not aware of any national companies that offer this type of loan. I have used a couple different local mortgage brokers that I found through referrals that offered no closing cost loans. I think most independent mortgage brokers would offer such a loan, but maybe don't advertise it much. If your in the Raleigh, NC area let me know I can send you the info on some I have used.

Posted by 2million | August 1, 2012 7:47 AM