A house worth $875,000 is expected to earn $30,000 gross rent revenue and incur rental costs of $5,000 over the next year. Assume that these cash flows are expected one year from now, so theyre received and paid annually in arrears. If the gross rent revenue and costs increase by 2.5% pa and houses can be valued as a perpetuity, what is the internal rate of return (IRR) of this house asset? Ignore taxes.