Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You purchased a rental property for $ 172,500 at the beginning of last year. The net rental income for the year was $ 12,615 .
You purchased a rental property for $172,500 at the beginning of last year. The net rental income for the year was $12,615. The value of the property increased to $183,000 by the end of that year. If you borrowed 50 percent of the purchase price from a local bank to finance the purchase, paying 6 percent, interest-only, what was your return on investment for the first year? (Round answer to 1 decimal place, e.g. 52.5.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started