House Price = $349,000

down payment = 20%

10 year fixed rate mortgage

2.95% mortgage rate / $1,314 per month

interest payment = $38.76

a. Estimate the rent per year, do not forget to deduct expenses from your rental payment.

b. Calculate how much profit you make in Dollar $ amounts and in percentages over 5 years if:

a. The property value increases by 30%

b. The property value decreases by 20%

c. Comment on your findings.

a. What do you think about leverage?

b. Is leverage a good thing?

c. Would you consider leveraging your investments/ principal residence?

d. Any other thoughts/ ideas?

e. What did you learn from this exercise?