3 Month Gaps

May, June and July were spent recovering from a health problem (or at least getting all screening tests that doctors like to order) and being in a doctor’s office roughly 3 times a week on average. That’s more than I had been to a doctor in 10 years’ time!

My history is one of not being overly concerned about my health, other than being fairly obsessive about eating well, sleeping enough, being active and taking a “wait and see” attitude if something seems a bit not to my liking. Generally, my attitude has been that I will go to a doctor when I have broken something or I’m unconscious 😉

This does not make doctors happy. Screened and tested for a solid three months, during which time nothing major or immediately life threatening has been found,  it seems a lot of my time  and money was wasted.  Why is it that if doctors cannot find anything major wrong with you they think they just need to do more tests?

Please don’t get me started on drug side effects. They mostly match any complaints I might have had, but then how are you to know if it’s the drug itself that’s actually maintaining a symptom that probably would have gone away with a little time? My method is to tell the doctors to take me off whatever has the same side effects as an original symptom. Let’s see if it goes away.

Do doctors realize how stupid they sound sometimes? (No offense to those doctors in the family.) It’s like an attorney asking you “Were you alone or by yourself?”

All kidding aside, there are a couple of doctors I like, but even they are meddlesome. I guess they don’t see many people my age without major problems. No, that’s not it, is it?  Doc: “Wouldn’t you want to know . . . if you were going to die?”  Me: “We’re all going to die someday.”

We can’t choose when we’re going to die or the how. But we can choose how we’re going to live.

I’m having a rant about our medical systems. They seem so oriented to disease. I prefer those practitioners who believe in integrative health so you can live your best version of yourself.

GRM (Gross Rent Multiplier) and Cash on Cash Return

Investors like to use the GRM as a fast method for identifying  a potential  cash-flowing investment property.

To figure your GRM, use your purchase price divided by the potential gross rents on an annual basis.

Many investors like to see a net of 8-20% cash on cash return on their investment. If you consider your initial investment (downpayment) then divide by your net cash flow (not gross – you want to use your cash flow after all your expenses.) This allows you  to decide if your investment will meet your cash on cash return requirement. It’s also where you decide if the risk is worthwhile for the return based on other factors.

Right now investors are not being compensated for the risks they are taking by keeping funds in banks or in the stock market. Historically, the real rate of return has been a lot higher on real terms. Don’t hold your breath waiting for the rates they pay you to rise. This is why you need to consider real estate that offers cash flow to build your portfolio and wealth.

Trusting the Economic Statistics on Real Estate

A recent article in Bloomberg News titled “Can You Trust Statistics on U.S. Housing”  points out that the stats generated by the government are actually more like looking in the rear-view mirror due to the nature of the process of buying a house which can take months of preparation, actually viewing properties and then the negotiating and closing.

I would add that certain stats purport to measure the same thing, but have different methodologies. You definitely need to know the basis for measurement. By the time the numbers show a definitive uptick indicative of a trend, you may already be behind the curve.

Better to watch and analyze true job growth and where it’s happening!

 

Water

There is a misguided perception that we have a world water shortage. However, as a long-time Sonoran Desert dweller, I can tell you that you don’t conserve water in the Northeast to relieve drought conditions in the Southwest. There are however, regional and local water shortages and droughts. It is imperative that we do not needlessly pollute the local and regional water supplies where we live. There is a big movement to “eat local” so that fresh food is available in your region without being trucked in at further expense. It stands to reason that you would not want your local food being polluted by your own water supply.  Be aware of what’s upstream in your watershed. I used to love poring over U.S. Geological Survey maps as a hiker. Always good to know the lay of the land where you live. Is common sense being utilized to make sure that you even have a water supply to produce food? This is the top basic function of local governments. What happens in the future if people upstream cut off your water supply? What happens if you live in an area with an inadequate water supply? Are current assumptions about water still valid?   El Nino may be expected this year, creating or exacerbating new areas of drought conditions. If you are buying investment property in Arizona, make sure you have access to an assured water supply.

A great summer project for kids would be making rain barrels and growing fresh veggies. In the future, this may be even more important to your health and the well-being of your family’s environment, including all your local flora and fauna.

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