Estimated Insurance: - $1,000 Estimated Taxes: - $5,000 Interest Only (20% Down, 7.5%) -$12,000

Net Annual Cashflow: +$2,000

** Note: Most people are choosing to finance with 10% down thus changing to a near neutral cashflow position at current rents.

While these are just preliminary numbers, they clearly show a night and day difference with the numbers in Cape San Blas. Also, when you visit, you find out there is very little property for sale and very little for rent…. That is a good combination in my opinion.

Comparison Of Fundamentals For educational purposes, let’s just look at the course fundamentals. Literally, you could put together this information based on just a couple of phone calls to people in the area.

Cape San Blas Annual Cashflow -$146,000 Net Rent Multiplier ($1.99M/$25K) 79.6 Inventory On Market Substantial New Commercial Growth Zero New Job Growth Zero

Marble Falls Annual Cashflow +$2,000 Gross Rent Multiplier ($200K/$19.4K) 10.0 Inventory On Market Negligible New Commercial Growth Substantial New Job Growth Substantial

Even though I would consider this at best a “first level” analysis, I can tell you immediately that I would have no interest in the Cape San Blas property and I would be very interested in the Marble Falls property. Why? Simple real estate fundamentals.

While there is lots of gloom & doom press out there about the real estate market, and some of it is actually true, never forget that real estate markets are not coupled…. That is, you can have a Mr. Hyde in one location and at the same have a very interesting Dr. Jekyll in another. To sort them out, simply “do the math”.

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