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 sale proceeds will be $530,688.37 at the end of the investors holding period. The appropriate discount rate is 4.2%.

What is the minimum price you should list the property for (i.e. the maximum an investor would be willing to pay)? Round up to the nearest whole dollar.

What will the investors going-in IRR be if they pay exactly list price? Round to two decimal places.

Rather than add your friends rent to your monthly mortgage payments, you have been saving towards your moving expenses. If you close on the home after making your last payment in year 5, how much will your loan payoff amount be (in other words, what is the outstanding balance on your loan after 5 years)? Round to two decimal places.