Option Blanks

A. Current income, Future gain or loss

B. Higher, Lower

C. More, Less

D. Decrease, Increase

Ch 16: Assignment - Real Estate and High-Risk Investments David and Beth White own two pieces of real estate. One is a suburban house in New York where they live, work, and are raising their children. The other is a condo in Colorado that they occasionally use when on vacation, but the majority of the year rent to visitors. Which property is primarily an investment? O The condo in Colorado O The house in New York O Both of these ONeither of these Price-to-rent ratio is used to measure in a real estate market. When calculating the following ratios, round your answers to the nearest two decimal places. Carl just paid $400,000 for a real estate investment. The following table shows the range of monthly rent he believes he can receive. Complete the following table: Annual rent Price-to-rent ratio Property Purchase price Monthly rent #1 $2,800 $400,000 $ 400,000 3,700 #3 400,000 4,500 Based on your calculations, the cash for expenses the price-to-rent ratio is, the better off Carl will be because he will have the chances of Carl enjoying positive cash flow. related to owning the property. This will Grade It Now Save & Continue Continue without saving #2 CENGAGE MINDTAP Ch 16: Assignment - Real Estate and High-Risk Investments 1. Making current income from real estate investment I SKI MOUNTAIN CONDOMINIUMS (970) 555-1212 David and Beth White own two pieces of real estate. One is a suburban house in New York where they live, work, and are raising their children. The other is a condo in Colorado that they occasionally use when on vacation, but the majority of the year rent to visitors. Which property is primarily an investment? O The condo in Colorado O The house in New York Both of these ONeither of these AAA RENTAL OFFICE Q Sea