12. Choosing a real estate Investment Comparing Real Estate Investments Suppose Sharon wants to invest in real estate and is considering two different residential properties. Based on the expected incomes and operating expenses of each, she estimates that the first property (property A) has an NOI of 545,000 and that the other property B) has an NOI of $38,000. If the cap rate is 10%, property A has an estimated value of and property has an estimated value of In deciding between these two properties, it is important for Sharon to consider other factors. If she is a first-time investor, she is probably better of Investing in property. (Note: Round your answers to two decimal places.) to Alternatively, Sharon might want to consider investing in a real estate investment trust (REIT), type of investment company that operates similarly mutual fund. Which of the following statements regarding Rents are true? Check all that apply. ALL REITs own income-producing real estate such as office buildings and hotels They pay dividends. Income distributed from REIT Investments is taxed at 15% They can increase the diversification of individuals who are already invested in the stock market. expenses of each, she estimates that the first proper If the cap rate is 10%, property A has an estimated value In deciding between these two properties, it is important investing in property. (Note: Round residential Alternatively, want to consider investing in to commercial tual fund. Which of the followin All REITs own income-producing real estate suc They pay dividends. If the cap rate is 10%, po In deciding between these two propertie investing in property. (Note: Roun Book Alteratively, Sharon might want to consider investin mutual fund. Which of the fe to a closed-end own income-producing real esta an open-end dividends. Income distributed from REIT investm They can increase the diversification