Attempts: Average: 12 9. Choosing a real estate investment Comparing Real Estate Investments Suppose Teresa wants to invest in real estate and is considering two different residential properties. Based on the expected incomes and operating expenses of each, she estimates that the first property (property A) has an NOI of 542,000 and that the other (property B) has an NOT of $31,000. If the cap rate is 10%, property A has an estimated value of 5 and property B has an estimated value of In deciding between these two properties, it is important for Teresa to consider other factors. If she is a first-time investom she is probably better off investing in property. (Note: Round your answers to two decimal places) 2 Alternatively, Teresa might want to consider investing in a real estate investment trust (REIT), a type of investment company that operates similarly to closed-end mutual fund. Which of the following statements regarding REITs are true? Check all that apply. They pay dividends DAN REITs own Income-producing real estate such as office buildings and hotels The value of REITs tends to move in the same direction as the general stock market Income distributed from REIT investments is taxed at 15% Grade It Now Save & Continue Continue without saving