1. Estimate the annual rent, annual expenses (maintenance, property tax, insurance, etc), depreciation, closing cost, net working capital, future home selling price (=salvage value), and any incremental cash flow that may be incurred by your investment. 2. Estimate the annual cash flows for year 0, 1, 2, ... till the year you expect to sell the property. 3. Estimate the cost of capital to finance your investment. (assume you put a 20% cash down payment and get a mortgage loan for the rest 80%) 4. Calculate the net present value of the investment and comment whether the rental property you choose is a good investment or not. 5. Discuss the pros and cons of rental property investing. total assessment 2018 (land value not available ) = $435,000 Property listed for = $540,000 Principal & Interest =$2,178 Property Tax =$80 Home Insurance =$202 HOA Fees= $160 total = $2,620