Adam is attempting to "flip" a property. He is buying a house for $300,000 and he is going to finance 80% of the purchase with a 30-year 6% loan. He plans to stay in the house for 6 years and then sell it. He expects that the house will appreciate in value at 3% per year during his stay there and he makes the following projections about his expenses: Closing costs at purchase - $9,000 Broker's commission at sale - 6 percent Appraisal fees spent over the holding period - $1,000 Cosmetic repairs for sale - $3,600 Maintenance costs (total for 6 years of stay) - $20,000 Property tax - 1.07 percent of the house value a year Property insurance - $4,700 (total for 6 years of stay) Given the information above, the fact that interest in mortgage payments is tax-deductible, the fact that property tax can be used as a deduction from the federal income tax, and the fact that Adam's marginal tax rate is expected to be 28 percent, compute Adam's expected recovery rate from "flipping." Ignore time value of money.