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I need urgent help with an assignment! Please help me! Best answer gets a thumbs up! Can someone please help me answer this HW question?
I need urgent help with an assignment! Please help me! Best answer gets a thumbs up! Can someone please help me answer this HW question? The best answer is guaranteed a thumbs up!
Can someone please help me answer this HW question? The best answer is guaranteed a thumbs up!
A town home in West LA is listed for sale at $800,000. Assume:
- You have enough money to make a 20% down payment and finance the purchase of the town home with a fully amortizing mortgage loan at 4% for 30 years.
- Property value and rental growth rates are expected to be 3% per annum.
- Insurance and maintenance are expected to be 500$ each in the first year.
- Expenses are expected to grow at 3% per annum.
- Marginal tax rate is 28%.
- Property tax rate as a % of home value is 1.5%
- You expect to own the town home for 5 years
- The selling expenses are expected to be 5%.
- A similar town home can be rented for $2000 per month.
- Please provide:
- A rent versus own analysis
- A cash flow analysis
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