Heroic Investing
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Real Estate Markets and featured Properties in Maryland & Mississippi!



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Jason Hartman hosts investment counselor Carrie discuss on the show as they look at two specific real estate markets – Maryland and Mississippi. They go through some available properties in the network and discuss why having some in your portfolio may make sense for you

Announcer 0:04
Welcome to the heroic investing show. As first responders we risk our lives every day our financial security is under attack. Our pensions are in a state of emergency. A single on duty incident can alter or erase our earning potential instantly and forever. We are the heroes of society. We are self reliant and we need to take care of our own financial future. The heroic investing show is our toolkit of business and investing tactics on our mission to financial freedom.

Jason Hartman 0:38
Hey, I wanted to invite our investment counselor Carrie back to talk about a couple of featured properties. Just a quick little update. Carrie, you’ve got two of them today. Which one do you want to talk about first?

Carrie 0:50
So let’s start with the Baltimore Maryland property. Right so this property it’s a three bedroom, one bath brick bombshell is what they call it explicitly. 165,000

Jason Hartman 1:01
it’s a good looking property. You know, our local market specialists there does the best renovations. I love the way at least in terms of the way the houses look. They know how to package them. Right? I mean, what do you agree with that?

Carrie 1:15
Yeah, very appealing,

Jason Hartman 1:17
very appealing looking properties super. They just make them really cute and visually desirable. Yeah, they do a good job.

Carrie 1:24
And they also do a good job on their rents. So this property is listed at 165,000. And it is currently rented at 1600.

Jason Hartman 1:32
So it’s already rented pre rented, right?

Carrie 1:35
Yep, majority of this market will only market the properties tenanted. So at closing, you’re pretty much cash flowing day one, which is a nice difference. And yeah, so then on this one, you are net cash flowing at 429 a month.

Jason Hartman 1:50
Wait a second. One of the things we’re always doing is we’re always picking apart these performers as our local market specialist upload them to the Jason Hartman calm website and they missed something they didn’t put the insurance quote in here. So it’s not going to be that high. I knew that was like too good to be true. Now, it’s still going to be fantastic. Because, you know, maybe that’s going to lower your cash flow to a positive cash flow. projected. I’m just going to guess here because you know, I have so much experience doing this, that that cash flow is ultimately going to be about positive maybe $370 a month, which is phenomenal. Okay, that’s excellent, excellent cash flow for a property like that with only 25% down. So good. Right,

Carrie 2:40
right. So yeah, all new new flooring, new hbic new roof. And the nice thing about this market too is they have a 6% management fee. So it’s one of the lowest

Jason Hartman 2:51
Yeah, and they’ve got the vacancy rate in there. We require them to put that in the performance of 8% per year. That’s one month per year vacant. So You know, it may be occupied for two years. And the vacancy rate may be only 4%. Or, you know what if you have a problem and you get a bad tenant, and you’ve got two months of vacancy in between tenants two years from now, then you’d average at 8% per year. They’ve got a high maintenance percentage on there, because this is not a new property, obviously, at 8% maintenance, which is very conservatively estimated, I would say. So, yeah, that’s fantastic. I would guess that when the insurance number is put in here, carry that the overall return on investment is going to hover around 30% annually, projected all in return on investment, and cash on cash return. That, of course, doesn’t include any appreciation is going to be around eight or 9% annually. That’s phenomenal. That’s just phenomenal. If you want to understand because I know that saying for the novice investor who doesn’t understand the way these numbers are calculated 30% annually, are you kidding me? That’s too good to be true. Not with income property, it’s not okay. And that’s why it’s the most historically proven asset class in the entire world. Because it’s a multi dimensional asset class. If you want to understand better how these numbers are calculated, go to Jason Hartman calm there’s a fantastic video that is free on the front page of our website that explains all of this. It goes through every single number on the Performa on the property Performa and tells you how it works. Why it’s that way, what to look for. Anything you want to know. It’s a great FREE video. 27 minutes, the best education you’ll ever get on how to analyze an income property for free. Right on the front page, the homepage of Jason Hartman, calm anything else about this one carry?

Carrie 4:56
Nope. I think that’s it, but it’s similar to what you were saying you No, all these local market specialists, they take pride in their properties. So sometimes you’ll get a Performa from them. And it might show 2% vacancy 1% maintenance. Yeah, you know, don’t reference that don’t believe it. Go to our site, look at the performance and look at what actually your returns will be.

Jason Hartman 5:18
So just to be clear on what you meant there. Sometimes after you are introduced through one of our investment counselors to a local market specialist in any one of our given markets, they will send you performers with their own format, right? And what we really believe in and talk about all the time and require of them is that they standardize this stuff. So you want to be looking at it in our format, so that you get good at reading one type of performer and you really know how to analyze and evaluate a deal better. So you can see those it Jason Hartman calm in the property section. Ask the local market specialist if they’re talking to you about other properties they have or whatever. Tell them you want to see it on our Performa. Okay. When I started doing this back in 2004, that’s the first thing I did. I standardized this stuff. So you don’t have to be a detective and get the wool pulled over your eyes by sellers and local market specialists that are trying to hide something. It’s all out there in the open and you use the standardized performance, you’ll be a lot better off. Okay, tell us about the second property in Mississippi.

Carrie 6:35
So this is with one of our Memphis, local market specialist. It’s on just a southern tip of Memphis in Robinson Ville, Mississippi. And this is a new construction property. They just completed four more of these in 2019 and they will have around seven more in 2020. So the listing price on this property is 149,900 and the gross rent Is 1295 giving you a nice net cash flow of 283 per month and an 8% cash on cash return

Jason Hartman 7:09
now those are the projections on the performer. Is this one already rented? Or is this the projected rent?

Carrie 7:15
We have recently sold a few that have those rents in place that already tentative with that?

Jason Hartman 7:20
Yeah, fantastic. Okay. So projected cash flow of 283 per month, based on 25% down, you would need about $45,000 all in to buy this property with your closing costs. And you know, again, that varies a little bit so make sure you get the detailed quote on the closing costs from the lender. The overall return on investment with our assumptions in here of 8% they can see and this one 3% maintenance, okay, because this is new construction. So you probably won’t even have 3% your first couple of years and probably be you know, zero percent or close to it. cash on cash return 8% Annually, debt coverage ratio 1.48%. And overall return on investment projected at 32%. annually. Excellent Carrie, anything else you want to say on featured properties or markets before you go?

Carrie 8:14
That’s it. There’s a lot of properties out on the site, Jason hartman.com. forward slash properties, or reach out to your investment counselor for the recent inventory list.

Jason Hartman 8:24
Yep. And you can also call us at one 800 Hartman. Gary, thanks for the update on these properties. Thanks, Jason. Thank you so much for listening. Please be sure to subscribe so that you don’t

Carrie 8:36
miss any episodes.

Jason Hartman 8:38
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