You are purchasing a home in Ft. Lauderdale for $725K. Estimate the annual rent, operating expenses (maintence, property tax, insurance, realtor fee), annual depreciation expense. Additionally, estimate the initial outlay of it if you wanted to make this property a rental business. Assume you will need at least 2 months rent as cash on hand to run this business (=net working capital).

HINT***Per IRS rule, residental rental property is depreciated at a rate of 3.636% each year for 27.5 years.