Jason Hartman introduces new investment counselor Doug. They discuss some economic indicators that will be an area of interest for real estate investors. They look at what is happening with suburban markets and how rent increases are increasing faster than urban areas. Then they look at inverted yield curves, negative equity, and Toll Brothers’ quarterly sales. The show ends with a look at the Kansas City market.

Investor 0:00
Hey, I just saw the email from Sarah. Congratulations on 1000 episodes of the podcast the creating wealth podcast.

Announcer 0:10
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it. And now here’s your host, Jason Hartman with the complete solution for real estate investors.

Jason Hartman 1:00
Welcome, and thank you so much for joining me today. This is your host, Jason Hartman with Episode 1095 1095. And good news for investors good news for our clients who have been following our plan in so many ways, and we’ll talk about that more. But first, I want to welcome Doug, who is back on the show. And here to join me today, Doug, how you doing?

Doug 1:23
Always great to be on the show, Jason. It’s good

Jason Hartman 1:25
to have you and congratulations on finally making the full move. I mean, you’ve been working with us for almost a decade now. It’s been a disturbingly long time. disturbingly long time. I love it. It has been a long time. I mean, I remember you over 10 years ago. Can you believe it? You know, you’ve spoken at several of our events and so forth. But you finally took the plunge and became a full fledged investment counts. Congratulations.

Doug 1:57
Thank you. Thank you. Yeah, I’m really looking forward to it. I mean, I think You’re your sales pitch to me was one thing you said. You go, Doug. You’re helping people invest Anyway, why don’t you get paid for it? Yeah, exactly. That was probably not a bad idea.

Jason Hartman 2:09
A fairly easy pitch, right? This folks, the one thing you can definitely say about me, is, I am a long term thinker. I am insanely tenacious, like, I never give up on anything ever. I mean, I can’t think of anything I ever give up on. Maybe it’s not always the best trade will admit that sometimes. tenacity is not always the best thing. But mostly it is mostly it is, and, hey, this has been a 10 year job interview. So you made the cut.

Doug 2:43
I made the cut. Good here. Yeah.

Jason Hartman 2:45
You know, like if you went to work for, you know, one of these big prestigious firms. I mean, I always say they’re a bunch of crooks, but that’s beside the point. But like Goldman Sachs, right, you know, you’d have 16 job interviews with all these different people in the men would take forever and they hardly ever hire anyone because everyone wants to work there and, you know, get these insane Wall Street bonuses. Right? But pay with us It takes like 10 years to get a job. So welcome.

Doug 3:15
Exactly. Well, I’m really looking forward to it. I think I mean, I think that I’ve been saying this for a while, but I think the strategy is really sound. You know, I think that people who are following the Platinum strategy are going to continue to do very well.

Jason Hartman 3:28
Yeah, you know, it’s sort of like the Who is it? Ray Dalio, I think who talks about the all seasons portfolios? He’s the one that has that.

Doug 3:36
I think he’s the one that knows that. Right? He is and who’s the one that introduced you to Ray Dalio?

Jason Hartman 3:40
Well, you did. Thank you very much. Yes. That That would be me at economics in one lesson, or something like that there. You know, the

Doug 3:48
30 minute an hour long. Yeah, yeah, how the economy works, but it’s fantastic.

Jason Hartman 3:52
It’s great. That’s a great video. And so the strategy really is a winning all around. And you know, you’ve been doing the job of being an investment counselor for the last 10 years. But, you know, you haven’t been getting paid for it. So it’s about time we change that. And we have good news today. This is not like we didn’t know this already. But hey, I caught a couple of articles that actually aren’t very recent one dates back to may 26. On Inman, you know, it’s something I’ve been saying for a long time. But you know, it’s sort of nice to see a glass half right. And I didn’t actually see a graph on this before. And it is, look, most of our investors have been buying properties that are suburban type properties. They’re not in the urban core. The urban core is mostly and it depends on the city, of course, and you know, we’re nationwide investors, so it depends where But mostly, the urban core is too expensive. It’s usually crime ridden. There are some benefits to it, of course, and that’s why people are willing to pay the prices, but you know, it typically doesn’t work for us. model. So the vast majority of our investors are suburban investors and rents have been rising in the suburbs quite significantly. Now, if you combine this with what I’ve predicted a long time ago, and I call it the revival of the suburbs, and that is mostly due to the autonomous vehicle, the self driving car again, you know, for a while, I thought that was, you know, 2025. And then I thought it was a lot sooner when I bought my first Tesla, and I was pretty impressed with how close we were, seemingly to really achieving autonomous driving. And then I got my second Tesla, and they had a couple accidents. And I think they really pulled back the capabilities of the car, it probably could do more, but there’s too much my ability to let it do more. Right. And so, so now it feels like the self driving cars a little further off, but either way, look, we know it’s going to be here. It’s not Going to be too terribly far away. And it is going to have a big impact on real estate in two ways. One, I’ve been predicting the resurgence of the suburbs, the revival the suburbs, but also, there’s going to be a lot more real estate available in the urban core, because parking spaces will free up parking lots will free up as cars become a subscription, rather than an ownership model. They it’ll be a sharing economy model, when they’re self driving, what they should just be driving all the time. They don’t need a rest just to refuel. That’s it, and they can drive 24 hours a day, seven days a week. So, you know, cotton does both two things at once. But when you look at this graph, Doug, any thoughts on that?

Doug 6:41
So one of the things that I really noticed is that in some of the cities like say New York, or San Francisco, there is a huge gap between the rent in the urban core and the outer areas is m fonder saying the price goes from insane to ridiculous, but there’s also a number of places, you know, places like Atlanta, where, you know, we’ve been pretty active over the years, that still have a pretty material differential between the middle of the city and going out in the suburbs. And I think that that differential is going to become really important over the next few years for a couple of reasons. Number one is that, you know, affordability is going to drive people out to the suburbs, which will push up rent, you know, it may not go up as fast as the inner city. But you know, if you walk in your price, now, who cares if it doesn’t go up as fast as the inner city, it’s still going up. And then number two, as you keep saying, that self driving cars and moving transportation from being something that people own to something that people subscribe to, that is going to make it much more accessible to get to the city from a long way away, because people will just ping an app and then can continue working while someone drives and then or while an autonomous vehicle drives them and that’s all

Jason Hartman 7:53
I can do. I can I can hardly wait for that to happen. That’s gonna be great. And you know, we’ve all heard the term SAS, you know, as a software as a service, well, this is going to be cast car as a service.

Doug 8:09
Exactly. Exactly. Well, and because the thing I think that’ll be really fantastic about it is once autonomous driving really takes off, no people will have unprecedented mobility. And you can live in a place that’s just absolutely gorgeous, but still effectively commute to an urban location for a job.

Jason Hartman 8:27
That’s pretty much you and your wife, Jasmine, and your kids. Yes, exactly. Your

Doug 8:33
hour and a half right now. And it’s a pain.

Jason Hartman 8:36
Right, right. Exactly. So you you bought this beautiful home in the Portland area and in the burbs, I think you spent about a million bucks on that house. And it is it’s just gorgeous. I mean, it’s it’s amazing. And if you wanted to buy that closer to the core, it would cause there’s a way dramatically more than way. First of all, it may not even exist a home like that, you know, we no matter what Right.

Doug 9:00
Yes, three flat acres close to Portland doesn’t exist, you can’t find it, right?

Jason Hartman 9:05
Yeah, exactly. When we look at this graph, and we look at the rent to value ratios in the suburbs versus the urban core of any city, they’re always dramatically better in the suburbs, with few exceptions like Detroit where you can’t collect rent anyway in the urban core. So, so it’s sort of irrelevant what you think your rent to value ratio is, it’s just kind of irrelevant, you know, but look at the annual change in urban and suburban rents in the top 25 metros, right. The suburban on the graph we’re looking at is represented in green, and the urban gap is represented in blue. So if you look throughout the country, the average is 2.5%. For this, the burbs and 2.3% for the urban, right so the urban rents are increasing at a slower pace. But wait, there’s more as they say. The rent to value ratios in the urban areas are already so much worse in almost every city. Okay, arable. So it’s really very telling Dallas sticks out. Okay now we’ve sold probably hundreds of properties in Dallas over the years, you know that market became a little too expensive. So we’re not promoting it at the moment. But when it gets reasonable again, we’ll be back. You know, meanwhile our investors have made a lot of money, they have stabilized properties just hanging on to them. You know, you don’t need to do anything. It’s just would you go into that market at this time is another question. But in the Dallas suburbs, rents have increased by 4.5% and in the urban areas only 3.3% another one that sticks out let’s look at a couple others here that are really telling Oh, boy, Seattle. Wow. You know, Seattle’s a market we’ve never recommended it’s always been too expensive but especially now, but the it’s amazing what’s happened in the burbs 8.2% versus at 6.3%. That’s amazing. That’s astonishing, really,

Doug 11:06
especially when you think about 8.3% that’s on rent, you know that that you have values, you go up, buy it, rent moves like mountains, you know, it’s like, you know, it’s your rent, you’re like, God bless, they don’t move very fast. Yeah, they’re like continental plates, they move very, there’s there,

Jason Hartman 11:22
they have a slow tectonic shift. But prices come back much faster. And this is another yet another reason why I like residential properties over commercial properties. Because in commercial properties, the value can’t move very quickly. And definitely the rents can because they’re tied into even longer term leases with maybe just CPI increases every year. And the CPI is always understated the consumer price index. So yeah, absolutely. Very interesting. Just any more thoughts on this before we leave the topic,

Doug 11:52
just that the main thing that I keep thinking of is that you know, I read articles every day saying, Hey, is the market at a top is the market at a top and I don’t know, maybe it is, but I thought it was back in 2010 2011. When, when you say when you say that you’re talking about the stock market? Yes. Yeah, exactly. Yeah. You know, but typically, right, the stock market tends to be the dog and then everything else tends to be the tail. Right? You know, when the stock market, it’s going bonkers, then people feel rich, and they’re willing to spend money on stuff when the stock market crashes, people feel poor, and they don’t want to spend money on Yeah,

Jason Hartman 12:20
yeah. So it’s

Doug 12:22
like, well, the world. Exactly. Yeah. So yeah, so real estate investors should pay attention to what’s happening with the stock market, even if you’re not invested in it, because it’s going to impact investor sentiment. And so you know, that as I say, it’s Yeah, it’s the dog and tail effect, but a lot of people would the markets going to crash and it’s like, you can’t play that game. Because if you do, then you’ll just get to where you know what Denis waitley calls you know, someday I’ll write someday I’ll invest when it’s better. Well, you’ll end up waiting forever, and he’ll miss it. Yeah, and so sometimes you just have to keep going.

Jason Hartman 12:54
Yeah, that’s the problem. The market timers never work out and they don’t really work out. In any market, but if you want to talk about the idea of being slow and steady and consistent that the tortoise and the hare parable, if you will look at what I’ve been saying for years, right, just by income properties, you’ll make a fortune ultimately, right? It was hard to convince people to do that in 2008 and 2009. Well, 2008 was actually okay. 2009 was hard to convince them 2010 for sure. 11 and then it started to really turn in about 2012. But at the same time, you know, we look at something like gold, we look at something like crypto currencies, and they’ve been absolute disasters as investments, okay. And that hasn’t worked at all. And you know, it’s very hard when everybody is glowing with hope, and they’re bragging about all the money they’re making, sometimes for you to just be the slow and steady one that ultimately wins the race. You know, life is a It’s a marathon, not a sprint.

Doug 14:02
The thing is that I think, too is that I think a lot of people have a skewed idea of what winning the race means is people say, Oh, I beat the market, or Oh, I need to make more money than so and so or, oh, I need to beat benchmark x. It’s like, No, you just need to get there. You know, you need to get to being able to have a good life. It doesn’t matter if you do it a year faster than somebody else. Most people never get there. Just get to the life you want. And I think a lot of people are like, Oh, if I’m not getting there faster than so and so then I’m failing. So, you know, if you’re getting there, you’re winning.

Jason Hartman 14:34
Well, that’s actually a good point. And I was saying this a long time ago was things were looking very gloomy, you know, 10 years ago, right? Is that economics even though you’re recommending, you know, don’t compare yourself and I totally get that idea. But ultimately, economics and wealth and poverty are a relative game. Because if the whole thing collapses, and you know, you net worth is $100. And your neighbor’s net worth is $50. And all the prices in the markets adjust, then you’re rich, right? So it’s the old, the two hikers with the bear, right? They see the bear. And one says, Come on, man, you gotta run, there’s a bear. And then the other stops to tie his shoelaces and he says, What are you doing? You can’t outrun a bear. And he says, I don’t need to outrun a bear. I just need to outrun you.

Doug 15:30
Exactly. That’s a competitive metaphor. Right, exactly.

Jason Hartman 15:33
Exactly. Wait, let’s look at a couple pieces of economic data. And last week when I read these, they were different than this week’s By the way, but last week when I read them, I was sitting there with Carmen and I said, You know what, don’t let me comment on any of these because I just wanted people to notice the contradictions in the headlines. And And how about first? Oh, yeah, I know. You didn’t hear that, didn’t you?

Doug 15:58
Yeah, I heard that. Yeah, you fail it. The first one Carmen called you out on it, too. It’s hard to get me to shut my

Jason Hartman 16:03
mouth, you know. not always easy, not always easy. But anyway, this week, well really last week’s update. So buyers are spending more time trying to find the perfect home, often three months or longer. However, most buyers say they refuse to give up, and we’ll keep looking. Now, to me, that’s an indicator of a lack of inventory. But as we know, in any of the higher end, cyclical markets, and any higher price product and I’m about to share another detail on that, by the way, another piece of economic news, the market is really getting painfully slow. I’ve got a think that’s going to trickle down to our market. It certainly hasn’t yet. inventory is very tight still. But I mean good inventory. Look, there’s a lot of crappy inventory out there, folks. If you want it go go to my competitors and you can buy crappy inventory from crap Providers all day long, bad deals aren’t tough to find. Yeah, bad deals are pretty easy to find. You know, they’ll put lipstick on the pig. They’ll wrap it up in a bow and they’ll make it look nice.

Doug 17:09
But every one of those has a good pro forma. Yeah, they’re all bad. Yeah,

Jason Hartman 17:13
a good performance and a nice little report that comes with it, too. But listen, I know the people that are working with, okay. And they’re the crappy people we refuse to work with. We’ll just make a little less money. But, but

Doug 17:27
the industry is not that big. It really isn’t. You know, it doesn’t take that long to figure out who the players are

Jason Hartman 17:33
now. It’s pretty, it’s pretty small. You’re right. Okay, so here’s the next piece of economic news that relates to that last piece. As you all know, Toll Brothers is a sort of high end home builder, right. And when you look at the home builders, and their perspective on the thing, now most of them build a variety of product, low, medium and high end right, but Toll Brothers really sticks to the higher end of the market and they build nationwide. And they reported the first decline and quarterly sales in more than four years. And they think that rising interest rates, and already high home prices were to blame. And I agree, I mean, those prices have been way out of bounds for three years or so the market was slow to react and they should be rejecting those homes at those prices because they’re just too they’re just too damn high as they say

Doug 18:25
exactly at the prices are too damn high.

Jason Hartman 18:27
And they are they are, okay, core logic, the big data company. And this is good news, by the way. They reported that homeowners around the country with negative equity, and you know, some of you might be surprised some people still have negative equity. You heard a lot about that, coming into in during the Great Recession, that people were underwater right now, this is a very good sign that the market has some degree of stability to it going forward because the number of homeowners according to core logic with negative equity declined by 81,000. In the third quarter, the average homeowner gained $12,400 in equity in the last year.

Doug 19:11
And so Jason, I think that that’s really important to stick on for a second because negative equity is what drives price spirals, because whenever you get into force liquidations, that drives down comparable prices, and then you can get another forced liquidation which continues to drive down comparable prices when people don’t have to sell that actually is fantastic for price stability.

Jason Hartman 19:32
Yeah, absolutely. So just to elaborate on what you’re saying there, when somebody has negative equity in their property, like they did moving into the Great Recession. So many people did. They just walk away, they don’t care. If they don’t have any skin in the game. As the saying goes, there’s really not much incentive to stay in the deal. Why not just take the other option, you know, the mortgage contract says, hey, look, you can either pay the mortgage or give us back the collateral, and so they’ll just Stop to give back the collateral and walk away and let the property foreclose. And, you know, they’re probably wise to do that look, millions of people did. And I think it was actually a very good strategy for those people to do that. So the positive equity issue really prevents that downward spiral because what happens that’s just to go one more step. So they walk away, and then the lender takes the property back, and then they resell the property at a lower price. So it’s like you have more declined, declined the client and that’s why when you compare that to the monetary policy issue of deflation, that is literally, in my opinion, the worst economic malady that the Federal Reserve and governments and central banks around the world will avoid at all costs. Inflation exact very good deal for them. deflation, terrible deal. Why? One reason, major reason everybody postpones decisions in a deep inflationary environment, they don’t buy, they just wait. They put it off.

Doug 21:04
And I think that the other thing too is that it’s a kind of corollary to what you’re talking about is that when people have positive equity, they have something to lose, you know, people who have something to lose, tend to be more, more reasonable and more measured in their actions, they tend to do less things that are knee jerk. Absolutely, absolutely. And that’s, you know, we see this in inner city areas, by the way, we’re talking about that earlier. And crime, you know, people that don’t have anything to lose with their life in general. They don’t act in a very thoughtful, prudent, measured way. Do they got nothing to lose? Right? You want everybody in society to have something at stake? Because they exactly they act like better citizens, right. If people are far more civil when they have something to care about losing?

Jason Hartman 21:48
Yep. And you know, that’s as it should be.

Doug 21:51
That’s not a bad thing.

Jason Hartman 21:52
Yeah. No, it’s very good bank. Very good thing. Okay. Okay. So the trade deficit widened a little bit more Was forecast in October. And it was the highest deficit in the decade. This underscores the continued fallout from the China US trade dispute. Ultimately, I think we just had to do that. And it’s part of a business plan. You know, it’s kind of similar to the way Reagan spent a lot of money on the arms race. And you know, look, I’m not in favor of the military industrial complex, but Reagan had a business plan. And, you know, ultimately, that was a major part of why the Soviet Union fell, it worked. And it was an investment. And it was, in my opinion worth it.

Doug 22:35
So I have a little bit of a variant perspective is that I think the trade thing or with China might have something to do with it. But I think the main reason why the trade deficits white insisted the dollar is strong, because interest rates are going up when the dollar is strong and interest rates are going up, imported stuffs cheaper. Yeah, yeah. No, that’s, it’s not evil. It’s just math.

Jason Hartman 22:52
It’s just math. It’s just math. Exactly, exactly it is. But when we see those jobs, come back to the US. That’s going to be inflationary. And I think it’s in a good way, you know, because people are going to have more money to spend, even though prices will be a little bit higher. Ultimately, I think that plan just works out better and, and look at lover hate Trump, I think in this little part of his job, I think it kind of had to be done because for decades, Americans had just been sold down the river. It’s been a bad deal. You know, at first it looked good, because everything was cheap when you went to the store, then everybody realized a few years later, hey, look, I don’t have a job where those high paying jobs go. And again, I want to tell everybody, you must watch old TV shows and old movies, just to understand the context in which people live and I get that it’s fiction most of the time. And by the way, I just finished you know, as much as I love to hate CNN, the communist News Network. They do have this great of course, there’s a ton of left wing spin in it. This great series on Netflix called The 60s, the 70s, the 80s. I’ve watched them all the 90s I just finished last week, they came out with the main beats. And in about 10 episodes, they cover the whole decade, and they cover everything from culture to economy to politics. Very interesting. I’d highly recommend those. And I’d watch them in order to chronologically it’s the way to do it. And those are fantastic just to kind of remember where we were and what the world was like at those times in history. Very good stuff. Okay. mortgage rates improved last week as stocks tumbled and bonds rallied. Remember, when bonds rally mortgage rates fall when bonds fall mortgage rates rise? Okay, so concerns the economy is cooling off, could help rates continue to improve so they’ll be less aggressive on rates as the economy cools? Any thoughts Doug lay at bonds are the safe haven for scared money, bonds and gold right? It was a fear currency. That’s exactly the fear currency. Now, the thing that different this time Famous Last Words of any investor this time it’s different. This time it’s different. I don’t remember you said that Jason. Yeah. Well, I’m not the first one. But the thing that’s different this time is crypto currencies. Are those going to be the scared money play? I don’t know. I don’t think so. I’m again I’d love to be wrong about crypto, but I don’t think it’s going to happen. Until it’s the cryptocurrency to sanction.

Doug 25:24
Yeah, it’s got to be sanctioned currencies to be real yet

Jason Hartman 25:27
there, you know, because you can still create a new one whenever you want until they’re real. I don’t think they matter. It’s it’s absolutely ridiculous. But when the cryptocurrency that’s sanctioned by the Federal Reserve, and the government comes out, that’ll be the one that’ll work. Yeah, that’ll be the way that whichever cryptocurrency has a standing army behind it. That’s the one I’m going to go with. But hey, that’s just me. And by the way, I’d love to be wrong about that. I want to say that again. I’d love to be wrong about that. Okay, yield and five year treasury bonds slipped below the radar. On the two year treasuries, this is called an inversion. Remember, we talked about the inverted yield curve before. And that has been a common sign of a prediction of a recession. Now, this one, Doug, you’re going to have to be very brief phone, because we could talk about this for an hour and a half. And we got to wrap it up. But Any thoughts?

Doug 26:21
Yeah, I’ve always been a little dubious about the yield curve predictor, because the thing that creates a recession is default, you know, either default on debts or default on obligations. Now, you know, what a yield curve tells us is that people aren’t getting paid very much to put their money at risk for a long time. So that means that there’s no incentive for anybody to put their money at risk for a long time. I think that’s all that the yield curve tells you to maybe have a little thing a little pedantic here, but I don’t view it as a you know, as a holy signal. It’s just saying that nobody’s getting paid to take risks for a long time. So nobody’s taking risks for a long time.

Jason Hartman 26:57
Right. But what does that tell us that the psychology of a Investors is short term minded rather than long term minded. Exactly right. But what does it tell us? I’m not asking for an answer and like a narrative. I mean, what does it tell us? It tells us that what people think things are going to change. They don’t know where to go. They’re confused.

Doug 27:19
Yeah, it tells us that people aren’t confident. Either that or they’re a little jittery, and that when something happens, that’s contrary to expectations, you’ll probably see a lot of volatility. You know, I think in an inverted yield curve does tell you you have volatility to look forward to. Yeah, so that means that you know, if things go, you know, bonkers, good then prices can shoot up. If they don’t hit expectations, prices can collapse, and you’ll see a lot of seesaw motions, right?

Jason Hartman 27:45
Yep, exactly. Okay. Hey, we got to wrap it up. I do want to let the listeners know that we are about to announce our very exciting meet the Masters we are going to have some fantastic speakers. I’m really excited about Our 21st meet the Masters meet the Masters number 21. And maybe what a number of them. I think the problem is it’s too close to the years, we were having 21 and 2018. That’s kind of confusing. Anyway, the 21st meet the Masters is coming up. And we are about to announce that in, launched the registration page, I think everybody’s gonna just have a great time at that event. So that’ll be in Southern California. And we will announce that very soon, Doug, any closing thoughts before we go,

Doug 28:30
just as you keep saying, it’s a fantastic time to be alive and there’s always opportunity out there, you know, somewhere out there is an awesome opportunity, and we’re going to help you find it.

Jason Hartman 28:38
Absolutely. Good stuff. Thanks for listening, everybody. We’ll talk to you in two days. We’re here every Monday, Wednesday and Friday and sometimes with an extra episode or two during the week, on Tuesday and Thursday, occasionally, but every Monday, Wednesday and Friday and we will talk to you in a couple days on the next episode. Happy investing.

Doug 28:58
Welcome to today’s property. profile and the creating wealth show. This is producer Adam. Today we’re going to take a look at a property that’s currently available through Jason’s network that’s located in Kansas City, Missouri. This is a three bedroom, two bath 1456 square foot single family home that is located in Kansas City, Missouri. Kansas City is the largest city in Missouri with a population of around 490,000, which makes it one of the 40 largest cities in the US from the 2000 to the 2010 census, the city saw a 4.1% population growth and is estimated to be up another 6%. Since then, Kansas City is home to an NFL team, the Kansas City Chiefs, a major league baseball team, the Kansas City Royals, a professional soccer team, Sporting Kansas City, and has been home of the big 12 college basketball tournament every year since 2008. Top employers in the area are government and healthcare related. This property’s $149,500 price tag gives it a cost per square foot of $103 It rents out at $1,250 for an RV ratio of point eight 4% with assumptions of 5% vacancy 5% maintenance 8% management fee and 25% down $37,375. For those keeping score and an interest rate of 5.75% you’re looking at a cash flow of about $214. Your cash on cash would be about 6% and total return on investment with tax savings would be in the 32% neighborhood. If you’re interested in this property, contact your investment counselor and tell them you want more information about the property listed in the show notes. For more properties available on Jason Hartman’s network, go to Jason Hartman calm forward slash properties. Obviously, this information is not guaranteed an investor should do their own research, get professional advice, and conduct your due diligence prior to investing. But we’re doing our best to help.

Jason Hartman 30:55
Thanks, thank you so much for listening. Please be sure to subscribe so that you don’t miss anything. episodes, be sure to check out the show’s specific website and our general website heart and Mediacom for appropriate disclaimers and Terms of Service. Remember that guest opinions are their own. And if you require specific legal or tax advice, or advice and any other specialized area, please consult an appropriate professional. And we also very much appreciate you reviewing the show. Please go to iTunes or Stitcher Radio or whatever platform you’re using and write a review for the show we would very much appreciate that. And be sure to make it official and subscribe so you do not miss any episodes. We look forward to seeing you on the next episode.