Option Blanks

A. Minus, Plus

B. Include, Not include

C. Negative, Positive

D. Two thirds, one quarter, one half, one third

E. don't include, include

Ch 16: Assignment - Real Estate and High-Risk Investments Back to Assignment Attempts Average / 4 2. Current income, cash flow, and rental yield Rental Property Income and Expenses rental income any associated expenses. If there is a The cash flow expected from a real estate investment should result from mortgage on the property, these expenses should the principal and interest. If there is money left over after covering the investment's expenses, then the investment will generate a cash flow. Eileen is considering investing in rental property and needs to calculate its recent rental yield. She knows this figure assumes that approximately of annual rents will be used to pay expenses that the rental property's mortgage debt. The purchase price of the property is $500,000. Assuming that annual rents remain constant at $57,600, Eileen calculates her rental yield would be %. (If required, round your answer to two decimal places.) Note: For simplification in the next question, disregard possible tax benefits. If Eileen makes the investment, she will pay cash, so she will have no mortgage payment. Based on her calculations, Eileen estimates that, after paying all expenses, the property will produce a cash flow of $ per year. Grade It Now Save & Continue Continue without saving