You own a house that you rent for $1,475 per month. The maintenance expenses on the house average $275 per month. The house cost $234,000 when you purchased it 4 years ago. A recent appraisal on the house valued it at $256,000. If you sell the house you will incur $20,480 in real estate fees. The annual property taxes are $3,250. 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?

$235,520

$256,000

$230,520

$0

$234,000