Upon investigation you found that it would require little or no work on your part. There was a rental agency which would keep the books, rent apartments, do evictions and other administrative tasks for 10% of the rent. Your investigation showed that the apartments stayed about 95% occupied and that occupancy rate is likely to continue. Additionally, the rental agency told you that you can expect rents to increase about 5% per year after 2017 year for the following three years (2018, 2019, and 2020) because the building is new. The repairs and maintenance costs are about $800 per month for 2017, 2018, 2019, and 2020. You want to earn at least 20% on your investment. You figure you will hold on to the apartment for four years and then sell it for $600,000 (on Dec 31, 2018). All other cash expenses run $1,000 per month and will rise at 5% per year after 2017. Assume it is Jan 1, 2017- what is the price you would pay for the apartment? Ignore taxes