44: How to Analyze Rent to Value Ratio

What is the rent-to-value ratio and how do you calculate it? This metric helps you evaluate the performance of a rental property. In this video, Jason Hartman gives you a 2019 real estate market update with what's happening in the linear and cyclical markets regarding inventory. Then, we'll examine what a good percentage is for the rent-to-value ratio using an example from a pro-forma. Next, you'll learn the importance of treating income property as as multi-dimensional asset class, and why cap rate isn't the best metric. Finally, Jason discusses the truth about the kind of return you really can get on higher quality properties vs. cheap ones. Remember, the property must make sense the day you buy it. No speculation! Website: www.JasonHartman.com