56: How to Lose Money By Not Calculating Opportunity Costs

56: How to Lose Money By Not Calculating Opportunity Costs

Jason discusses the importance of opportunity costs using one of his properties as an example. About 15 years ago, he purchased a home in Austin, Texas for $150,000 and rented it for $1400 a month. Now it's worth $250,000 and is rented for $1700. While some may think the property is doing well, the fact that the rent is not keeping pace with the appreciation is an indication that the property is doing much worse than when he originally purchased it. He also discusses how having more leverage and debt decreases risk. The riskiest position is having the equity tied up in the property.

Website:

www.HowToLoseMoney.com

www.JasonHartman.com

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Jaksot(123)

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