Jason Hartman

It's not based on income.

It's a great strategy to follow.

I love debt on real estate.

But if it's not, the leverage is what makes the whole deal fly.

I don't invest based on appreciation.

I invest based on rent to value ratios where I want to see that property rent for 1% of the value per month.

So appreciation is the icing on the cake.

I want to see the property rent for 1% of the value per month

No, not in well, yes, in gross cash flow, 1% per month.

No, of course not.

nathan you're you're you're looking at it wrong cash flow is is determined largely by the amount of leverage you have on the property if you have a highly levered property where you have little to no money in the deal your cash flow is not going to be as good so you can't evaluate it by cash flow because actually and it's counterintuitive all the real estate i do i only care about cash flow right i purposely don't you're not growing your wealth as quickly if you

You are, yes.

I'll tell you why.

Because income property is a multidimensional asset class.

And the return comes from a lot more things than just cashflow.

If you have a million dollar property in the example you gave, and you have no money in the deal, but you're getting a hundred bucks a month, that's a phenomenal deal.

You're getting a hundred bucks a month on nothing.

Well, sure.

Then you got to value your time.

That's a separate question.