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Gina is interested in buying a house beside the university which she will rent to students. She expects to receive $ 800 a month in
Gina is interested in buying a house beside the university which she will rent to students. She expects to receive $800 a month in rental income(net ofmaintenance). Gina's real estate agent estimates that she will be able to sell the property for $200,000 at the end of 41 months. Gina wants a return of 0.3% per month. What is the most that she should pay for theproperty? Assume that she will purchase the house today and receive the first(beginning ofmonth) rental payment today.
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