First Net Worth Report SEP 2017
As I preached in a prior post it’s extremely important to gauge where you are with your goals and where you want to be in the future. Thus, this is my ‘starting point’ which is very much ahead for most Millennials.
I participated in the NROTC program which paid for my tuition while I got my degree in Biochemistry. I also became a Resident Assistant 1) to stay on campus and 2) get free room and board (which can be worth $10-15,000). I wouldn’t say I was ‘lucky’ that I don’t have student loans I incurred a huge time commitment to the US Military.
I don’t regret my choice to join however I think there are other ways to not have a ton of student debt. My best friends are/were all in the Navy and they still are today. I wouldn’t have met my partner if I weren’t in San Diego at the time, etc… I wouldn’t have access to the VA loan if I were not in part of the military. And obviously, I get the opportunity to serve America and the active duty personnel that make sacrifices throughout their life for our country.
So…you won’t see any student loans on these spreadsheets and I’m thankful for that. I got a $55,000/year scholarship from my commitment to the Navy. I do believe though that college in America is overpriced and that I would’ve gotten the same amount of ‘education’ and knowledge if I went to a state school and worked my butt off.
Ideally, if I didn’t have moving away from my parents as a huge goal at the age of 18 I would’ve stayed in Denver/Boulder, CO gotten a bunch of credits for my AP classes (equivalent to freshman year), still become an RA and then maybe have taken out some student loans.
However, after college I went to USUHS, the military medical school. Got paid as an Ensign or O-1 and started putting money into my TSP, going into the most aggressive fund plus saving some money into Mutual Funds. That was about all the time I had to dedicate to personal finance in the midst of biochemistry, pharmacology, anatomy, etc…
My two rental properties are duplexes. I live in one currently and the other is in Southern California (thus the huge loan). Most real estate investors stay far away from SoCal to invest in because 1) its hella expensive to enter the market 2) No cash flow 3)Tenant Friendly AF
I have weighed the pros and cons and I’m holding on to this property because I saw 13% appreciation just holding onto it for a couple of years, plus I want to move back there, it has a yard for me and my dogs, I have awesome tenants, and I have an emotional attachment to it. That is NOT how to conduct yourself purchasing rental properties however it was my first purchase and I’m allowed to make mistakes in my twenties right?
I came so close to selling the place and even accepted an offer but backed out because I realized these things. I did not put a ton of cash down, I’m building equity and I have really good insurance to mitigate some of the risks.
My second property was much more of a ‘better investment,’ also a duplex. It is in the ‘business district’ of an area centered around three big companies (including the US military), recently renovated and convenient on the East Coast. I actually purchased this property from a distance and was kind of crazy, but that’s what you do when you’re 26! I have a great tenant in here now who has been paying my mortgage for the past 6-8 months while I figure out my next move.
There’s a brief summary of my big purchases and assets thus far.