Scenario. A 3 bedroom, 2 bathroom home with 2 car garage in a desirable neighborhood.The market says that comparable homes in good condition sell for $160,000. You have examined the home and believe that it will need extensive work to make the kitchen and bathrooms current. It needs a new roof and other typical work. That often includes cleaning, painting, and flooring. You estimate that you will spend 3 months and $45,000 on the house, doing some work yourself. Your investment goals for real estate are a minimum of 18% of the sales price as profit. You will use a real estate broker to sell the completed home and the real estate broker charges a 5% commission. Assume that this is your only closing cost. You will be using cash.Questions:1. What is the most that you should pay for the house?2. If you rent the house, you would take out a loan at 5% for 20 years. You will borrow at 75% loan to market value. How much rent would you have to charge to break even each month to cover your mortgage payment, which is loan principal and interest, plus $200 per month in expenses?