Question: Sarah and Paul are thinking of buying or renting another house to showcase even more products and ideas. They are wondering if the house could be partially rented out to a tenant who would agree to keep things clean and permit customers to visit with advance notice. The tenant could also help with adding or removing furniture and appliances once sales have been completed to customers. Sarah estimates that the monthly rental income of $1,000 would potentially make up half of the mortgage payment (35% interest on average over ten years) and four-fifths of the entire rental payment. In both a rental and ownership scenario, House Tech would incur additional monthly expenses of $500 a month. Sarah expects the new house will boost current sales by 10%. She also expects its value to increase by $30,000 over ten years. Sarah is asking for your input on whether they should rent, buy, or avoid the house altogether.

Answer: Sarah and Paul should consider buying a house as it will generate income from renting and that it will grow in value over time. Sarah estimates that a monthly income of $1,000 could be generated that will constitute half of the mortgage payments. This is more beneficial than renting since the rental income would constitute four-fifths of the entire rental payments. Therefore, it will be more profitable to buy the house and rent it while showcasing their products instead of renting the house. Similarly, the value of the house would increase by $30,000 over ten years which would provide additional income to the business. Sarah and Paul would significantly gain from the increased value of the house which would not have been generated if they had rented the house. Also, the choice of buying the house is beneficial as it will increase the revenue of the business by 10% while the costs incurred will only be $500 a month.

I WANT TO TO HAVE THE QUANTITATIVE ANALYSIS OF THE ABOVE ANSWER, COMPARISON