You own a house that you rent for $1,325 per month. The maintenance expenses on the house average $245 per month. The house cost $228,000 when you purchased it 4 years ago. A recent appraisal on the house valued it at $250,000. If you sell the house you will incur $20,000 in real estate fees. The annual property taxes are $2,950. You are deciding whether to sell the house or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office?

Multiple Choice

$225,480

$250,000

$0

$230,000

$228,000