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Five years later, you are offered your dream job in Turks and Caicos. You need to sell this house in order to purchase a new

Five years later, you are offered your dream job in Turks and Caicos. You need to sell this house in order to purchase a new one where you are moving. Your roommate would like to remain in the home until they finish their PhD in 6 years. They are willing to sign a six year lease with the following terms: Rent will be $2,000/month for the first three years, and increase to $2,200/month for the remaining three years. The average investors holding period on residential rental properties is six years. You have estimated gross sale proceeds will be $530,688.37 at the end of the investors holding period. The appropriate discount rate is 4.2%.

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