July 2013 Net Worth Update (+$40,011)

Highlights for July

Our properties are listed on our balance sheet based on their cost basis, not current market value. We did this while the real estate market was riding high and we continue to do it now during the slide. I believe real estate is too illiquid to list based on recent sale transactions. For those interested, our June Zillow property estimates are: $195,359; $120,809; $282,207; and $236,537.
July had our net worth increase significantly with our gains almost completely driven by stock market valuation increases.
Our spending is still above average as we settled into our new apartment in China and began to add some discipline to our spending going forward. I expect our credit card balance to go down further next month as a result. Expenses will be slightly above average as our living expenses will be less (reimbursements from work) but our travel expenses will certainly be higher as we try to make the most of the opportunity for the family to spend time in Asia .
Our increase in cash this month was largely attributed to selling ~$10k in taxable stock holdings. We also returned the security deposit on a rental that turned over this month.
I also nudged up our principal payments on the variable IELOC for house #2 this month that is currently at 4.25%. We currently carry about $66k in variable rate loans (IELOC, HELOC) on houses #1 & #2. If our economy continues to improve I expect interest rates could rise over the next few years. I'd like to be in a better position in-case that happens and continue to reduce the balances we have to increase our flexibility when the time comes.
In July our actively managed portfolio beat our VTI benchmark. At this point I feel the need to increase our cash position (and emergency funds) as the stock market continues to rise. I'll post my investing report shortly.

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Comments (4)

Great numbers for the month. How are you handling your rentals while in China? Did you outsource the responsibilities to a property management company?

Posted by Jason | August 5, 2013 1:27 PM

Jason, last assignment I used a professional management company to manage the property while I was away. That worked ok and would do it again if needed. This time I have a local handyman I use regularly just help with maintenance and misc requests. I had tenants lined up for the next 11 months at all 3 properties so was not particularly concerned about dealing with vacancies while away, however there is a potential risk that I may need to and will have to deal with that if it comes up.

Posted by 2million | August 7, 2013 12:00 AM

Great gains 2million!

As a 'long time reader request', would you mind finding the time to show us your monthly cashflow?

Thanks, hope your having fun!

Posted by Edwin Sierra | August 9, 2013 3:21 AM

Edwin,
Here is the most recent snapshot I posted for
November 2012 cash flow -> , but would probably be worthwhile for an update. Ill post one when i can.

Posted by 2million | August 10, 2013 11:44 PM