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Carlos is going to buy real estate as an investment. He intends to use leverage in the hopes of earning a rate of return that
Carlos is going to buy real estate as an investment. He intends to use leverage in the hopes of earning a rate of return that is greater than his tax costs of to pay for the purchase. Jared and Harry each bought identical apartment buildings on the same day. They paid $200,000 and a year later sold them for $214,200. During the year, they made capital improvements costing $4,000. Repairs and maintenance totaled $3,000. Round your answer to the nearest 1/100th of a percentage. Percentage sign will automatically appear in input box, if it is required. Jared Harry Jared paid cash for his building. Harry paid for his building with a cash down payment of $30,000 and a mortgage loan of $170,000. Jared's capital gain on the sale of the property is Harry's capital gain on the sale of the property is Rounding your answer to the nearest two decimal places and disregarding expenses, Jared's rate of return is Rounding your answer to the nearest two decimal places and disregarding expenses, Harry's rate of return is Note that Jared doesn't have a loan-to-value ratio because he didn't take out a loan to buy the property. Rounding your answer to the nearest whole number, Harry's loan-to-value ratio is
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