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I am thinking about buying a rental property in Southern California. The purchase price of the house is $ 5 0 0 , 0 0
I am thinking about buying a rental property in Southern California. The purchase price of the house is $ I will put a down payment and finance the rest, with a year loan and interest rate. The closing cost for the loan will be $ After I purchase the house, I will rent it out for $ a month. However, I need to consider the property tax, insurance, and maintenance, together it is estimated to be $ a month. If I believe I can sell the house for $ after years, what are my NPV and IRR for this investment?
Initial outlay CF
Monthly mortgage payment: PV N IY FV PMT
Monthly net cash flow
At the end of the years, sell the house and get $
My total cash flows:
CF
C
F
C
F
I NPV
IRR monthlyannually
What is the IRR?? and the NPV
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