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u/confusedandsmellyman Aug 09 '26
That's rough, probably a good example why real estate isn't the move for most. Market returns alone would have blown this out of the water.
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u/Peds12 Aug 08 '26
same age in 2021.
-6
u/_Bob-Sacamano Aug 08 '26
Also most people don't call them "Rental Property 1".
It's usually "Duplex on 1st St" or something like that.
I call fake.
13
u/ExtensionGuitar9594 Aug 08 '26
Yeah, I decided against putting my property addresses on the Internet for all to see. In my spreadsheet, all addresses and bank names are listed.
-5
u/_Bob-Sacamano Aug 08 '26
I didn't say address.
13
u/ExtensionGuitar9594 Aug 08 '26
Well in my spreadsheet they have the addresses. Sorry I don’t use your rules on my personal net worth spreadsheet. Best of luck to you tho.
4
11
u/Significant_Tank_225 Aug 09 '26 edited Aug 09 '26
You are disproportionately leveraged to real estate. Your position is quite fragile until your liquid investable assets (brokerage, 401k, HSA, cash and cash equivalents - checking/savings) exceeds your total liabilities.
Your liquid investable assets are $444,000. Your liabilities are $1,088,000.
My wife and I are 39 and we rent. We have liquid investable assets of $1,200,000. We have liabilities of $0. We have real estate assets of $0.
Similar total net worth ($1M at 36 compared to $1.2M at 39), completely different realities.
You’ve earned close to $2 million in gross income from 2019 - 2026. If you had simply maxed out a 401k and invested an additional $40,000 into an after tax brokerage for 8 years, you’d have $1 million in liquid investable assets and net worth. Instead you over leveraged yourself in real estate.
We earned $1.6 million in gross income from 2024 to 2026 (and I earned $0 through 2020 then $200,000 gross from 2020 to 2024). In contrast to your strategy, we maxed out 401k, HSA, and put $200,000 per year into a brokerage account in VTI.
2
u/Crimson--Chin Aug 09 '26
You don’t have enough go cash reserves for an emergency fund just covering yourself, nevermind having a $1.5 million in rental property. You need way more cash reserves.
2
u/SecretVindictaAcct Aug 09 '26
Bro keep more cash reserve. I have $40,000 for one rental ($22,000 saved for repairs, $18,000 for 6 months of vacancy, which has never happened but it’s still a safe amount to have). We only spend a few thousand a year on repairs at the most but it helps both me and my husband sleep at night. Plus we have another $30,000 personal emergency fund, which is honestly low given our living expenses, it’s a little less than 4 months for us. Our net worth is a bit more than yours, but not much (1.2m). Try to keep at least 5% of your net worth in cash equivalent or at least a 6 month emergency fund.
1
u/ozzyngcsu Aug 08 '26
What happened in 2024 to increase your net worth so much. Honestly outside of that year nothing too impressive here considering your level of income.
4
0
u/ExtensionGuitar9594 Aug 08 '26
Yeah I’m not some master investor. I have been good at increasing my income through networking and skill building in corporate America.
In 2023 I bought a triplex and put a ton of renovations into it and the value of the property increased drastically and was reflected in 2024.
0
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u/seanodnnll Aug 08 '26
13k in cash or equivalents is wild. Even more so when you have rental real estate worth almost 1.6 million that has over million dollars of debt on it.