Problem 1: Valuing Residential Real Estate {10} You are considering the purchase of the house located at If'lfllll+ Ellenwood Avenue, St. Louis, MO 63105. (For the uninformed this is our Dean's house}. The house has about g-ll'l sq feet of heated and moled living area, and the current owners are asking a price of $1.5 million for it. Use the information provided in the following table to determine an initial estimate of the value of the house. Comparable 1 nwoodi , What additional information would help you estimate the reasonableness of the sale price? Eillow, {a real estate website mzillowcnml estimates the rent on the property to be $lil'month. Using this and a projected maintenance expense of $150 per month and a marginal tax rate of 25%, 1ivhat is the value of the house as a pure investment property].r if your discount rate is l'l