Starting Net Worth: $49,546
April was a milestone month, both personally and professionally. After months of preparation, we were so excited to finally close on our duplex. For this duplex, we used an FHA mortgage to put 3.5% down with a home purchase price of $280,000. Our analysis on the property showed a total potential rent of $2,800 per month, with $1,600 coming from the larger side and $1,200 from the small side. Our total mortgage payment would be approximately $2,300 per month, which means when fully rented we would have a cash flow of $500 per month. Since we were going to be living on one side, we chose to live on the smaller side which allowed our immediate rental income to be $1,600 per month and as a result our personal housing expense was dramatically reduced to just over $700 per month.
As soon as the closing was completed, we began moving out of our apartment and into the side of the duplex we would be living in. At the same time, we began getting the other side of the duplex ready for rent. The rental unit needed a significant amount of work, as the previous tenant had been a smoker. This meant a full deep cleaning and repainting of all the walls and ceilings to ensure the space was fresh and move-in ready. Additionally, we incurred a $1,682 lease-break fee to exit our apartment early, which was a necessary step in transitioning to our new home and investment.
Professionally, April also marked a major achievement: I officially earned my CERTIFIED FINANCIAL PLANNER (CFP®) designation. While I had already completed the education and exam requirements, I reached the final milestone by completing 4,000 hours of qualifying work experience this month.
Overall, April was an incredibly busy month, but it was a month where we accomplished a lot towards our long-term goals and future.
Ending Net Worth: $52,506
None of the above information is a recommendation. This blog is purely intended as commentary on things that have happened along our financial journey.