Total Net Worth in December: $326,610 (-$11,823)
December was a tough month, we had a really bad downturn in Kinder Morgan. In addition we spent a significant amount of money on rehabbing our house.
Assets: ($757,556) -$2,974
This month, I updated the KBB values for our autos, something that I hadn’t done in a while. Also, I dropped the assumption for the quality of the cars (good vs. very good condition).
We continue to take a conservative view of property price appreciation, and have made no changes to the listed values of our real estate holdings.
Net Cash Accounts: (-$3,419)
Our cash balances were down this month. We had Christmas expenses, travel, gifts etc.
In addition, we paid just under $6,000 towards house remodeling expenses. I would expect about $10-15K more will be paid out in January as we finish up the work we are having done.
Net Cash Rental Accounts: ($1,677)
Cash for our rentals was up this month offset by some repairs/improvements. As an example we installed some additional security lights, bought some new light fixtures and a couple of new faucets. Short term we are investing our cash flow in repairs and upkeep.
Our long term strategy is to have well maintained properties that are easy to rent and where we can continually attract high quality tenants. Over the long term we should be able to charge higher rents, have fewer vacancies and eventually earn more money.
Retirement accounts: (-$8,475)
Its been a tough few weeks, our contributions have been offset by continued losses in KMI. There may be some additional downward pressure, but over the long haul, they have some of the best assets in the business, and KMI will benefit from the long term trend to natural gas.
The liabilities went down due to our regular monthly payments. Our 2016 goal is to reduce this category by $50K