7. Choosing a real estate investment Comparing Real Estate Investrients Suppost Caroline wants to irivest in real estate and is considering two different tesidential properties, Based on the expected incomes and operating expenses of each, the entimates that the first property (property A) thas an Not of 350,000 and that the cther (property 8) has an Not of $32,000. It the cap rate is 9%, property A has an estimated value of and property 8 has an entimated value of In decoling between these two properties, it is araportant for Caroline to consider other factors. If she is o first-bine investor, the is probably better off trivestang in property. (Note: flound your ancwers to two decirnal places.) Altematively, Carohine might want to consider invesong in a real estate investrnent trust (REII), a type of investinent company that operatos similanly to mutual fund. Whach of the following staternents regarding Reits are true? Check all that apply. They allow individuals to buy shares in a real estan-thased stock portfolio: They can increase the diversifcotion of individuals who are already inveted in the stock maket. If the cap rate is 9%, property A has an estimated value of and In deciding between these two properties, it is important for Ca she is probably better off investing in property. (Note: Round your an Alternatively,Carolinemightwanttoctonginarealestateinvestmenttrust(flowingstatementsregardingREITsar They allow individuals to buy shares in a real estate-based stock portfolio. They pay dividends. They can increase the diversification of individuals who are already invested in All REITS own income-producing real estate such as office buildings and hotels. she is probably better off investing in property. (Note: Round your answers to Alternatively, Caroline might want to consider investing in a real estate investment trust (REIT), a to mutual fund. Which of the following statements regarding REITs are true? 3 w inclividuals to buy shares in a real estate-based stock portfolio. dividends. They can increase the diversification of individuals who are already invested in the stock All REITs own income-producing real estate such as office buildings and hotels