Creating Wealth Real Estate Investing - Archive Episodes 201-300

Jason Hartman profiles 30 investment markets nationwide. What does the future hold? The unique characteristic of our market forecast is that we go beyond the traditional method of forecasting appreciation only to profile the income property return on investment for each market area. There are three basic components to return on investment with income properties.  The first is value appreciation.  The second element is leverage, since most real estate assets are purchased with financing.  The third element is cash flow, which represents the impact of rent revenue, management fees, taxes, insurance, maintenance, and other costs associated with owning and renting an income property.  One of the key inputs into our return on investment model is the mortgage payment.  Since income properties are not owner occupied, they typically involve higher interest rates than traditional mortgages.  Our models assume a 6.6% interest rate in 2011 to build the return on investment estimates.  Other key elements in the return on