Use internet (such as realtor.com) to pick a house or condo that you may be interested in investing as a rental property for 10 years. (suggested price range between $250k - $1 million) Show all calculations.

1. (0.5 point) Estimate the annual rent, annual expenses (maintenance, property tax, insurance, etc), depreciation expense (per IRS rule, link below), closing cost, future home selling price (=salvage value). Use reasonable estimates, when forecasting.

2. (0.5 point). Calculate the initial outlay using your answers from Q1.

3. (0.5 point). Calculate the annual operating cash flow for yr 1, 2, ..., 10 using your answers from Q1.

4. (0.5 point). Calculate the terminal cash flow in yr 10 your answers from Q1.

*Per IRS rule, one can depreciate rental property over 27.5 years. For details:https://www.investopedia.com/articles/investing/060815/how-rental-property-depreciation-works.asp