Today’s Flash Back Friday comes from Episode 364, originally published in March 2014.
Join Jason Hartman as he discusses cash flow, real appreciation and geographic diversification as it applies to his, not Albert Einstein’s, theory of real estate relativity. You’ll hear a valuable comparison of a typical Santa Ana, California property with a Birmingham, Alabama and an Atlanta, Georgia property. How do they stack up? Jason will lead you through an in-depth look at rent-to-value ratios (RV Ratio), historical appreciation rates of linear and cyclical markets, as well as hybrid linear/cyclical markets. This comparison may surprise you in several ways. What’s better A $455,000 house that rents for $2,500 per month to six people? Or several $52,000 houses that rent for $700 per month? The same concept can be applied to large multi family apartment complexes and across every geographic market or metropolitan statistical area (MSA).
Next up, Jason talks to one of his lenders about reverse mortgages, a growing trend with broader implications on the real estate market and the economy as a whole.