4. Leverage, return on investment, and loan-to-value ratio for real estate investments Lei is going to buy real estate as an investment. She intends to use leverage in the hopes of earning a rate of return that is greater than her tax costs of to pay for the purchase. Alison and Amy each bought identical apartment buildings on the same day. They paid $150,000 and a year later sold them for $158,000. During the year, they made capital improvements costing $3,000. Repairs and maintenance totaled $2.250. Alison Alison paid cash for her building. Alison's capital gain on the sale of the property is S Rounding your answer to the nearest two decimal places and disregarding expenses, Alison's rate of return is 16. Note that Alison doesn't have a loan-to-value ratio because she didn't take out a loan to buy the property. Amy Amy paid for her building with a cash down payment of $30,000 and a mortgage loan of $120,000. Amy's capital gain on the sale of the property is S Rounding your answer to the nearest two decimal places and disregarding expenses, Amy's rate of return is Rounding your answer to the nearest whole number, Amy's loan-to- value ratio is %