I Live in Charlotte

• Look in the local real estate listings for the "trendy area" near your town. Choose a property, and then make up a purchase price offer within the pre-approved amount the bank has given you.In other words, if the property is listed for $179,900, tell us that and listyour purchase offer price, such as $175,000.
• Now, imagine that you submitted an offer and your offer was accepted. Look up local bankmortgage ratesin your area for investment property.Using the bank's mortgage calculator, determine the monthly payment on this property.Tell usthe terms of the loan(i.e. period, interest rate, down payment, etc.) and the first three months' worth of theloan amortization schedule.
• How much interest will you pay over the five (5) years that you plan to own this investment property?
• Assume that you are able to sell this rental property in five (5) years for $25,000 more than you paid for it. Expenses of the sale are $2,000 for closing costs, and 6% of the sales price for realtor fees.What is your net return on holding this property?Did this fairly compensate you for the risk of owning it over the 5 years?Why or why not?Be sure to address theexpected future valueof this property, as compared to the actual return.