Assume a mortgage rate of 5.00% for the entire duration of a mortgage.

The mortgage amortization period is 30 years, with monthly compounding and payments.

assume a growth rate of 2.00 % for both home values and rental units over the entire mortgage amortization period (30 years).

the cash down payment at time of purchase is: 5 % for a single - family home.

all costs are to be calculated to present value.

Do NOT take into account taxes, maintenance, etc.!!!

Price of family home: 580,000$, with a profit of 1000$/month generated from a rental unit in the house.

Calculate housing costs of this. (present value). must factor in the growth rate