Assume you can purchase a 3 bedroom rental townhome for 350,000. The down payment required is 15%. You finance the remaining amount with a 5% 30 year fixed term loan. You estimate the your annual property taxes will be $1350 and your annual homeowners insurance expense will be $800. You plan on charging $1950 per month in rent. You plan to sell the property in 13 yrs for $435,000. The appropriate inflation adjusted discount rate is 3.2% per annum.

How much interest would you pay if you kept the home and made only the required payment for the 30 yrs.