You are given the following information on an investment property. Units $25 Rent per Unit $959 Vacancy Allowance 5% Expenses 21.12% of net rental income Cap Rate 7.23% What is net operating income for this property?

Question 51

You purchase a property for $125,000. Your cash flow from the first year is $6,000. Each year, your cash flow grows by 3%. After 4 years (4 cash flows), you sell the property for $175,000. What is your internal rate of return on this investment property? Answer should be formatted as a percent with 2 decimal places (e.g. 99.99)