Question
You have an opportunity to purchase rental real estate. Your required return on your investment is 15 % because of anticipated rehab costs. The initial
You have an opportunity to purchase rental real estate. Your required return on your investment is 15 % because of anticipated rehab costs. The initial investment in the property is $350,000. You have done your research and have forecasted a monthly rental income of $ 1,700 per month. You intend to hold on to this investment at least 5 years and at the end of five years hope to sell at $380,000. What is the net present value of this property?
| A. | -$88,456 | |
| B. | $92,689 | |
| C. | $28,589 | |
| D. | -$92,689 |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
