Jason Hartman starts the show discussing recent real estate headlines. This leads to the interview section where Jason hosts a couple of podcasters from the Real Estate Guys, Roger Helms and Russell Gray. The discussion centers around the increase in institutional investors in the single-family market. They go over housing inventory, the impact of short term rentals and the latest tax code. Jason ends the show with investment counselor Adam to go over a property in Cleveland, Ohio.

Investor 0:00
My wife and I were drawn to you because we liked the idea of putting money down qualifying, making sure we can cover the mortgage, you know, and have reserves like you were talking a language that was very appealing, based on what we had gone through before.

Announcer 0:16
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

Jason Hartman 1:04
investors. Welcome to Episode 1098 1098. Thank you so much for joining me today, as I am now in southern Florida home, back home after a quite a bunch of travels, as you know, I think I had the highest parking bill of the year at Tampa International Airport. When I left the parking lot. I asked the lady I said, Is this going to be the highest fee for parking you ever had? And she said no, I’ve seen higher and I said well, is it least the highest this year? And she said yes. It was the highest of the year and I said Do I get a prize for my $510 parking bill? Yes, I was actually going for 51 days my car sat there and thank you BMW you started on the first try. That was pretty impressive. I didn’t think the car would even started. All that time. But yes, it’s been a whole bunch of different trips. And today we are joined by two friends of mine who have been on the show before and they are returning and that is the real estate guys. We had a long discussion with them at the Ironmen conference, a fascinating discussion, if I must say so myself, I think you’re really going to enjoy this interview. It will be in two parts today and on the next episode, really stay tuned for that just a few minutes here, but to bring you up to date on a couple of things. First off, the market is changing. Did you hear that? Yes, we are in for a change. Do not be fooled. Do not be fooled by the promoters out there who are saying that you can have passive income as you know, I tell you, that is a lie. It is bogus. It’s BS. It’s not true. There is no such thing as passive income. There is some income that is more passive than others, but nothing is completely past of. So don’t be fooled by those lies. And don’t be fooled by the lies that the times they aren’t a change. And as Bob Dylan told us many years ago times they are changing. Get ready for that. And we are going to see you through those changes as we have been for the last 14 years. And before that for many, many years in my traditional real estate career as well. When I landed in Tampa, the reason I had to fly back that way, instead of coming to the east coast of Florida where I live, I

Jason Hartman 3:30
attended nourishes wedding now you’ve heard no rush on the show many times. And that was my first Indian wedding. If you haven’t been to an Indian wedding, you must go to one get yourself invited to one. Invite yourself. Certainly you know someone who’s Indian if you are not, and you’ve got to go to an Indian wedding, it is the biggest celebration of all weddings, I believe, a three day wedding that really is even more than three days. It doesn’t stop there because A lot of family and close friends are continuing that wedding right into the honeymoon with a happy couple. But it was a lot of fun. Carmen, what did you think of the Indian wedding experience? I thought that was pretty neat, huh?

Carmen 4:12
It was beautiful. So like you said it was three days. And it was so colorful and so sparkly everywhere. I mean, that just sparkly. I

Jason Hartman 4:21
love that description.

Carmen 4:23
Yes. I mean, the outfits were beautiful. We were wearing traditional outfits. Yes,

Jason Hartman 4:27
we got some traditional Indian clothing. And if I must say I thought we looked up pretty awesome.

Carmen 4:33
Yeah, so I enjoy it very much. And, you know, I think everybody had a blast. I mean, it was non stop every day started at nine or 10am. And he went on until maybe one or two in the morning.

Jason Hartman 4:44
We sat at the table with Steve sugar roots brother and as you know, Steve sugar rude was on the show before years ago and he predicted that residential real estate will be the best investment in America over the next several years and he was absolutely right. His brother was at the table with us, of course and rush has been on the show many times before. He’s been working with us for maybe the past five years, doing a lot of lot of great stuff. Also another show guest Pat Donahoe and his wife, his lovely wife were there and Carrie Lutz was there with us. And we just had a good time shared a bunch of meals together over that long weekend. And it was a lot of fun talked about real estate talked about how the economy is changing. So be careful out there, make sure you are talking to us talking to our investment counselors, and getting good advice and getting that here on the show as well. Any other thoughts on the wedding?

Carmen 5:36
I think for the guests, it was amazing. Now I have to say the ceremony. I think the bride and groom had to spend probably about three or four hours doing their traditional thing and while everybody was coming in and out of the Rome and having appetizers they pretty much were stuck there for three or four hours

Jason Hartman 5:54
they were working and that’s a lot of work before the bride and groom I think at a at an Indian wedding. They Were they were doing a lot of stuff. They had to be very tired after those three days.

Carmen 6:04
Yeah, I agree. I mean, but they were there the entire time and looking happy. So that was amazing.

Jason Hartman 6:09
at the dinner on the last night of the event, I gave a speech and that was really fun. I was very honored to do that. shared some marriage advice now coming from me, that was kind of odd.

Carmen 6:21
So that was good. You were the first person to start this speech and the reception night and everybody was laughing. It was interesting to hear the story of how the bride and groom met. It was a really nice speech. I think everybody had a really good time hearing the story and laughing a little bit.

Jason Hartman 6:36
Yeah, that was good. That was good. That was a lot of fun. What are we are going to talk about today with our guest is we’re going to talk about some of the institutionalization of real estate investing, and really dive into that topic a little more. I think this is very significant to us as mom and pop investors because the market is changing and the field the industry is changing. But here’s the thing, as we talk about this, I just want you to keep some perspective with it, because we’re talking about these trends as insiders. But overall, in the overall grand scheme of things, this is still a very small force in the world of income property investing. And I think it’s rather exciting that the institutions are putting a lot of money behind this and a lot of a lot of interest in it. I think that bodes very well for us. I think it brings us a lot of new tools for our business, and we’ll see if they stick with it, you know, a long time ago, back in maybe 2010 2011 or even 2009 when I was talking about this trend, and the significance of players like Blackstone and and other private equity and hedge fund type groups. In our business, though the Wall Street ization of real estate investing, I predicted that they wouldn’t like it that they wouldn’t want Like the fragmentation of it, you know, I’m seeing some signs of that. But we’re also seeing those who are kind of in for the duration and then for the ride. So it’ll be interesting to see how this all pans out over over the years. But it’s definitely an interesting trend. I want to also invite you make sure that you get your tickets several of you have already so congratulations. Joining us for our 21st anniversary of meet the masters of income property. This will be in Southern California coming up in the next few months. We will announce the venue and more details soon, but you can get your tickets now. You can get those at super early bird prices at Jason Hartman comm slash masters. That’s Jason Hartman comm slash masters. Let’s go to part one of this fascinating discussion, as we talked about many trends in real estate including institutionalization. So here we go.

Jason Hartman 9:03
Hey, it’s my pleasure to welcome a couple returning guests back to the show. I’ve got the real estate guys, Russell gray and Robert Helms, and we are at the Iron Men conference here in Scottsdale, Arizona. They have been on the show before, and they’ve got a lot of insight in the market. They’ve been here interviewing people as have I. What’s going on, guys say hello.

The RE Guys 9:21
Hey, Jason, good to see you and hello to everybody. It’s great to be on the program.

The RE Guys 9:25
Hey, everyone. Hi, Jason. Thanks for having us.

Jason Hartman 9:28
It’s good to have you back. So we talked a little bit just a few minutes ago about the institutionalization of the real estate investing business. And I think that’s a fascinating trend. Overall, though, in the marketplace. It’s a relatively small thing still, compared to you know, 1617 million homes being owned by mom and pop investors. You know, maybe there’s 50,000 that one institution owns and 10,000 another one owns it’s still a small number, but it is a trend and there’s a lot of money chasing the single family home. rental market nowadays. What are your thoughts on it?

The RE Guys 10:02
Yeah, I think it’s a great point that we’re seeing the start of something just like radio for years was the medium and little by little podcast started to chip away, right. And now, even though it’s still there’s a lot of radio listeners, what the podcast audience allow us to do is find exactly the people are interested in what we’re talking about. And I think here, what we’re learning is that there’s these bigger buyers of properties. And they think differently. Real Estate’s always been made up of a whole bunch of mom and pops that want to have a house to own and a house to rent. And maybe they build up a portfolio over time, and they have great income in retirement. That’s not the folks that we’re meeting at this conference. These are folks that have 100,000 10,000 homes, and it changes the game and even though you’re right, it’s still the minority of the number of homes. It’s a huge trend.

Jason Hartman 10:48
Yeah, is a big trend. So so it really validates the asset class, though, I think, I mean, you know, for years, we’ve all been telling our listeners, you know, that it’s the greatest investment you know, it’s the ice always say, it’s the most Historically proven asset class in the world income property. But you know, with this much money coming into this game, not apartments, single family homes, that really validates the asset class, doesn’t it?

The RE Guys 11:12
Yeah. Well, you know, really comes down to this concept of consolidation. And that’s what happens. You know, Warren Buffett famously said, in the middle of the 2008 crisis, or just shortly thereafter, you know, I would go out and buy 200,000 homes if I could. And the reason he couldn’t is because there weren’t marketplaces, there weren’t channels, there was no way for a guy at that scale to operate at that level. Well, you know, the thing is, when there’s profit to be made in any industry, I have a background in the office supply industry of all places. When I started in the business in the late 70s. There were thousands of mom and pop office supply stores. So what happened is people looked at the margins and they said, you know, this is a very inefficient industry, and there’s a lot of opportunity to create efficiencies and so we can go buy these little mom and pop office supply stores, and we can consolidate them, put in these efficiencies and generate a lot of profit, and then institutionalize, if you will, because they became publicly traded companies, and now they’re traded in on Wall Street. Well, the same thing is happening here.

Jason Hartman 12:12
And of course, you’re referring to like Office Depot and officemax, and staples and

The RE Guys 12:17
staples and all that, you know, I worked at the same company, and it got bought and sold several times as the consolidation went on big fish, eating the smaller fish and then bigger fish eating the big fish and so on and so forth until there was only four or five players left. And so you know, it’s we’re here listening to these people, their customers are institutional investors who are looking to place large amounts of capital in order to attract that capital, they’ve got to go out and deal in bulk. You know, we had a guy who was saying, I don’t even go into a market unless I can get to 250 units fast. And really 500 is my my sweet spot where I get the operating efficiency. Imagine somebody thinking that way as a single family home investor, that before I’m even going to be interested in a market. I’ve got to have to Hundred and 50 units, and then I’ve got to get to 500 before it even starts to make sense.

Jason Hartman 13:05
So we tell our investors, you know, diversify into at least three markets, not more than five. And so if they want to buy, you know, 20 houses will say, you know, get yourself four houses in, you know, in five different markets or something like that, right. But this is big numbers these guys are talking about. So my theory is, and you may be Feel free to disagree with me on this, but I find a lot of this big money being kind of dumb. It isn’t very picky. In other words, like our small investors, because it’s their money, right, instead of money they raised and they’re not spending someone else’s money. It’s kind of like the government, I always say, when it’s everybody’s money, it’s nobody’s money, right? So they’re just willing to buy stuff that isn’t really necessarily the greatest deals. So if I was an investor on the flip side of that in their fund or in their security, I would think these deals, they’re not Honestly, they’re not very good that they’re buying. And yesterday I had lunch with a guy here who will remain nameless, who said something really key, and I found it to be true is that whenever he wants to sell some properties off his portfolio that aren’t that great, they’re kind of his dogs, he just gives them to one of these big groups and they either buy them or sell them for him to you know, if they have a marketplace. So interesting. Such a good point, Jason, you know, an

The RE Guys 14:21
individual investor is going to be critically concerned with every element of the property, the durability of the rent the markets, it’s in the tenant landlord law, if you’re going to get to scale of 250 or 500 homes, you simply don’t have the time to be that particular what they’re looking at is lower returns, which they’ll accept at a risk that they can handle the difference. And I think the key that small investors where they have the advantage is they can be more nimble. They can be more particular, if I’m buying a you know, a bulk purchase, which a lot of the folks here are buying and selling portfolios of homes. I’m taking the good, the bad and taking it all together. And I think your point is correct that they aren’t actually good at it. I don’t know that I classify them as dumb, because they’re a pretty well heeled. They’re not dumb. I don’t mean it like that. But they are they definitely have not sharpen their pencil they aren’t as particular as mom and pop up.

Jason Hartman 15:13
Because they’re rewarded for deploying capital rather than agonizing over little things in the deal, right? They think

The RE Guys 15:19
very differently. So think about this. Think about where you were at when you very first started. You’re taking out your own garbage, you’re doing your own bookkeeping, you are editing your own podcast, you’re posting it up, you’re doing everything yourself, right? Because you’re small. As you get bigger and you are worrying about bigger problems and you’re solving bigger problems and you’re dealing with higher return on time and investment activities. You pay a premium to get that stuff done easy. Well. You know, I could do that for free if I did it myself, but it isn’t free. It’s lost opportunity. These guys are trying to move at speed. They know they’re going to have scale. And the other thing is they don’t care about cash flow the way cash flow investors care about cash flow. Cash Flow is designed to control the asset. Well, they wait for it to appreciate They still believe in the buy low sell high mentality. And so they’re in it to control the asset for a cycle. They came in low when everything was on sale fire sales, you know, just Carnage everywhere blood in the streets they’re holding until they get to a point where it’s mature, and then they’re going to exit. The big thing to be thinking about when you’re in the reason we’re here at this conference is where is their mindset today. And we’re hearing a lot of disposition going on. We’re hearing people that are unwinding portfolios, and they’ve got to do it under control, if they dump it all. It’s unlike anything that we’ve ever seen in the industry before because people are literally able to crash a market if they’re not careful. We have to count as mom and pop investors, we have to count on these people to be sober and mature about how they unwind their portfolios. Peter Schiff has told us many times the problem is going to be when these guys realize that employments not there and that rents aren’t there and data, they’re just going to dump these things like hot potatoes. He understands their mindset. I think they’re smarter than that, and they’re not going to crash the market, but they could. And so you just have to pay attention that but they think differently than us. And that’s the point

Jason Hartman 16:59
in points. So whenever you have this kind of consolidation and you know not monopoly, but you know a duopoly or a try awfully are quite awfully, I don’t know, I made up those words, the last couple, there is a greater concern about them being able to really impact the market in a big way. We saw it certainly on the way up, when all these hedge funds and private equity groups were attending all the foreclosure auctions in, you know, 2010 1112, even 2009. And they were just filling them up. And all of our local market specialists that were there competing trying to buy properties. We’re thinking, you know, these deals are just too expensive. They’re willing to overpay, but what’s interesting about it, is that, you know, a lot of times no deal is good today, it’s okay today, but when you fast forward a couple of years, you look in the rearview mirror and you think and I should have bought everything under the sun, right? That’s certainly how I think all the time, right. I’m thinking, why do I let my clients buy those properties? I should have bought them all you know, so that always happens, but what are your thoughts about like, you know, What’s coming? What’s going to happen next? I mean, I don’t see this a big move toward the unwinding that you mentioned. But I don’t know. What do you think?

The RE Guys 18:09
Well, I think part of it is based on demand, right? If employment is high, and people have jobs and then to live somewhere and the population is increasing, we have an impending may not feel like it. But housing shortage, there needs to be more units. So one of the interesting things that came up, I think, at this conference, is this whole idea of build to rent. And we’ve done some of this over the years if we’re going to market the market strong and it’s just not good inventory. Well, because you know, you have a lot of investors, we have a lot of investment, we can go in and build 50 houses that makes sense for tenants. These guys are thinking about that at the 200 and thousand unit level. So if they can’t find the inventory, they’ll build the inventory. But there’s a big section and then you got to think through when we were talking about 2009 2010 you were able to buy a property below replacement cost. Well, you can’t build below replacement cost by definition. That’s impossible.

Jason Hartman 18:59
Yeah. So

The RE Guys 19:00
So it has the metrics have to be good enough to be able to buy the land, build the property, rent it out and have that may return makes sense. But it’s interesting that these folks, I don’t see a run to the exit yet either. I think they’re all trying to acquire, in anticipation of even a further consolidation.

Jason Hartman 19:16
Very interesting stuff. So so let’s kind of switch gears a little bit to the economy and the market. What do you guys think is happening now? You know, we’ve certainly seen the high end markets around the country are cooling dramatically. And, of course, I’ve been saying that’s going to happen for years. I’m sure you guys have been to their way past the point of fundamentals back to 2013, for sure, maybe even earlier, as we’ve come out of the Great Recession. But you know, that certainly hasn’t trickled down to these low priced rental properties that are good long term rental properties that we’re selling. We still have this terrible shortage of inventory. I say it over and over our business. We could quadruple our business tomorrow if we just have the inventory of properties to sell what’s going on in the marketplace. I

The RE Guys 19:59
think The question is, where’s the pressure coming from? Is it coming from people coming up from the bottom? Or is it pressure from people coming down from the top? Right? So there’s pressure it, that’s why you always want to be in the middle market, right? Because you get pressure in good times it comes up from the bottom. And in bad times, it comes down from the top. So you’re seeing weakness at the top. And you know, Millennials are at some point going to be a force, but they’re still not a huge force yet. So I gotta say, it’s probably an indication of a little bit of weakness. I think the interest rates are indicative of that the unsubsidized loans, the houses that are being sold above the conforming loan limits are moving slower than the ones that are below so you have that going on.

Jason Hartman 20:40
One more thing you might want to add to that, which I’m sure you’ve talked about before is the new tax plan and the salt, the state and local taxes issue and how that plan really has attacked these higher price markets, whether they be New York, LA, all of California, you know, etc, etc.

The RE Guys 20:57
Yeah, I think that the that was the thing about was going to say, and it’s a great point is that the changes in the tax law are significant with respect to real estate. I mean, very, very significant, not just the opportunity’s own thing, which is really going to be interesting. It’ll be interesting to see how much money comes out of other assets that people have been maybe stuck in their portfolio of the Fang stocks, right? They’ve been in these things that are highly appreciated. And if they sell it,

Jason Hartman 21:21
hashtag overpriced, yeah.

The RE Guys 21:22
And they’re going to they’re going to be hit with a 30 or 40% tax bill if they sell it so they don’t sell it. And now they have the opportunity to sell it and roll the money in but then you’ve got the accelerated depreciation thing happening that’s pulling investment dollars in literally making real estate even more favorable than some of the other tax shelters in the past. And anytime the tax code changes substantially real estate investors need to take a look at it. Last time we had a major tax overhaul, it wiped out the savings and loan industry. It created that horrible real estate recession that we had in the early what was at the the late 80s, early 90s. Right. And so it was brand

Jason Hartman 21:59
new left a lot of windmills on attended.

The RE Guys 22:03
Right? Right, right, because they changed the rules about passive losses.

Jason Hartman 22:06
And what I’m referring to there, folks is, is, you know, a lot of doctors used to buy windmills as investments that made no economic sense. They were strictly a tax play. And so the reagan tax reform kind of killed that, right.

The RE Guys 22:17
Yeah, exactly. And so so you just have to look at how these things. You know, Tom wheelwright tells us all the time that the tax code is designed to drive behavior, and people who pay attention to the tax code will behave in a certain way. So when the tax code changes, if you want to kind of get in the path of progress, you got to think, Okay, what are people going to do in reaction to this, and that’s all unfolding, as we’re sitting here. And that’s going to be another big factor going into the future.

Jason Hartman 22:41
Right, no question about it. So how about the economy, the market, you know, the tax thing, obviously, big impact, what can we expect? Seems like we’re in a little bit of a transition point right now,

The RE Guys 22:51
but we sure are and we all know this is the longest recovery that any of us have seen in our lifetimes, and it was interesting quote on one of the panels that no recovery ever Because of old age, it’s not just us just run out of time. There’s not some maximum amount of time, it’s because something happens. And so I think the things we’ve been talking about, and other things that are shifts in the way that commerce happens, and the way that the jobs so we’re adding jobs, but they are high paying jobs, there’s not a lot of high paying jobs being added. And so the jobs that are there means people can go to work, but they don’t have the benefits they wants. Did they want to be closer to work, things like increase in oil prices affect them, maybe to a larger degree than a lot of other folks. So as real estate investors, we want to think about how do we invest in places they’re going to do? Well, whether there’s continued vibrancy or not, and that’s one of the big challenges. But I think that we’re we’re probably all going to agree that interest rates are going to either increase or decrease in the future. But right now, it looks like we’re seeing an increase in interest rates, which affects affordability. Now that’s not all bad, right? Because to your point, I know you talked about this a lot. We don’t need a lot more homeownership necessarily. It’s perfectly okay to rent but you know, it Used to be the American dream to own a home? I’m not sure it is anymore

Jason Hartman 24:03
such a good point because there used to be. I mean, I don’t know, maybe it was just my perception because I always owned. You know, when I moved out of mom’s house, I bought a condo in Irvine, California. And that was my first place to live in. And I only rented for like, a year when I was building a house in Newport coast. And then as of 2011, I became a renter for the last several years. And it was kind of like there was this sort of snobbery, this kind of stigma. Oh, you’re a renter, you’re like in the lower class. But frankly, if you rent a high end property, it’s a great deal. You know, because the rent to value ratio is so in favor the tenant,

The RE Guys 24:37
it’s a better deal for you than it is the landlord.

Jason Hartman 24:39
Absolutely. Right. Yeah, it’s it’s a great deal. But interestingly, with the sharing economy, the Airbnb and vacation realm, short term rental market, those high end properties aren’t as available as they used to be for rent. They used to be plentiful. And in my recent move to Florida, I looked around and and tried to rent rent rent a high end property, and there was Much so I ended up buying something. So now I’m going to be a homeowner again, although I own many rental properties, of course, but the Airbnb effect has really changed the market and a lot of ways. And I sort of Wonder too, if that is going to end up being a bit of a crash, maybe a significant one. Because so many, you know, this is an interesting topic. You know, how many sleeping room nights does the world need? Look at hotels are still there. They’re still in business. They’re still selling a lot of room nights. I mean, hotel occupancy is pretty good. As far as I know, I haven’t researched that in depth. You add all these extra Airbnb rooms? Are those being filled? Because the economy is so strong? And is that gonna, you know, the minute a recession hits, that’s going on on trips and vacations is quite optional thoughts?

The RE Guys 25:51
Well, this is such an interesting point. There’s, I think there’s a little bigger picture and let’s talk about that specifically, which is that when there is a different buyer than you intended, remember In Las Vegas when they were building all these new home developments designed for owner occupants, and instead investors came in and snapped up all that inventory, thinking there’d be a great rental market. Of course, many of those homes sat empty. I think a lot of folks have, whether it’s a high end unit where they’re thinking we can run it for five or $6,000 a month, if I can get 1200 dollars a night. Wow, that makes better sense. So all of a sudden, a unit that was available for an owner occupant is no longer in that inventory. Now what’s in the overnight inventory sucked out of the market? Yeah. So there’s changes on both sides. I think part of the reason the hotel industry is pretty strong. People are traveling more even though they maybe not as far and in terms of duration, but they also this whole share economy thing. I don’t necessarily need to spend all of my life in 110 mile radius anymore, right? I mean, obviously you travel a lot. You have holdings in a lot of places and you could have a lifestyle where I live in this area for part of the year this year or the year and so hotels, there’s not been a lot of new hotel construction and Yet there’s still demand is people travel. There was this whole theory that webinars are going to eliminate conferences. But we know sitting here at a conference with over 1000 people that people still want to get together, chew the fat, find out what’s going on their marketplace. I met a guy, today’s multifamily guy. This is a single family home conference, but he lives in the area and said I better I better learn a little bit what’s happening a single family. So I think that when you think about the initial purpose of building a unit, retail or multifamily property, and you change the use, it’s going to affect that supply side.

Jason Hartman 27:33
This will be continued on the next episode. Thank you for listening and happy investing.

Adam 27:40
Welcome to today’s property profile on the creating wealth show. This is Adam. Today we’re going to take a look at a property and it’s currently available through Jason’s network located in Cleveland, Ohio. This is a five bedroom 1650 square foot single family home that is located in Cleveland, Ohio. Cleveland is the 51st largest city in The us with a population just under 390,000. The greater Cleveland area which includes Cleveland, Akron, and Canton has a population of over three and a half million, which is ranked 15th in the US. Plus, as you probably know, it’s home to the Rock and Roll Hall of Fame. Unfortunately, Cleveland has seen a population decrease in recent years. But according to the Federal Housing Finance Agency, the area has seen annual appreciation in the three to 5% range in 2016 and early 2017. The median age is just under 36, with the population consisting of 48% male and 52% female. Cleveland’s economy is primarily driven by manufacturing, but can also boast that it’s home to corporate headquarters for companies such as applied industrial technologies, and Sherwin Williams company, as well as the NASA facility the Glenn Research Center. The Cleveland Clinic employs about 37,000 people in Cleveland have a median income of just under 26,000, and a family median income just over $30,000 This property is at $5,000 price tag gives it a cost per square foot of $52. The home is a section eight property and is currently rented at $1,191 for an RV ratio of 1.4% with assumptions of 8% vacancy 8% maintenance 10% management fee and 25% down, which is $21,250. If you don’t have your calculator handy, you’re looking at a cash flow of about $257. Your cash on cash would be about 12% and total return on investment with tax savings would be in the 25% neighborhood. If you’re interested in this property, contact your investment counselor and tell them that you want more information about the property linked in the show notes. For more properties available on Jason Hartman’s network. Go to Jason hartman.com forward slash properties. Obviously this information is not guaranteed. An investor should do their own research, get professional advice and conduct due diligence prior to investing. We’re doing our best to help

Jason Hartman 30:00
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