Comparing Real Estate Investments Suppose Susan 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 $43,000 and that the other (property B) has an NGE of $33,000. If the cap rate is 9%, property A has an estimated value of $477.777.78 and property B has an estimated value of $366,666.67. In deciding between these two properties, it is important for Susan to consider other factors. If she is a first-time investor, property. (Note: Round your answers to two decimal places.) she is probably better off investing in residential Alternatively, Susan might want to consider investing in a real estate investment trust (REIT), a type of investment company that operates similarly to a closed-end mutual fund. Which of the following statements regarding REITs are true? Check all that apply. They can increase the diversification of individuals who are already invested in the stock market. 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%. All REITs own income-producing real estate such as office buildings and hotels. Grade It Now Save & Continue Continue without saving