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Suppose an investor is examining a rental property listed for sale. The property has five apartments, cach of which can be rented for $750 per

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Suppose an investor is examining a rental property listed for sale. The property has five apartments, cach of which can be rented for $750 per month. A 10% vacancy and collection loss rate is expected in a year. Annual operating expenses and maintenance expenses are estimated to be $3000 and $3800 respectively. The owner pays utilities of $2600 and insurance and taxes predicted to be $7100 annually. If the investor can put 50% down on the property price of $400000 and obtain a 30 -year mortgage at 7.5%, what is the property's cash flow? Suppose at the end of 30 th year, the resale price of the property is $1000000, what is intemal rate of return for the investor

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