Maria is thinking about purchasing a two-bedroom condominium as a rental property investment. She...
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Maria is thinking about purchasing a twobedroom condominium as a rental property investment. She believes she can easily find a family to rent the property, or rent it out to travelers through a room sharing service, and earn $ per month in rent. Her monthly expenses include a mortgage with a payment of $ condo fees of $ taxes of $ insurance of $ and miscellaneous maintenance of $ Maria would also generate tax savings from depreciation of the rental property which would generate a positive $ of savings that should be included in her positive cash flows. How much net annual cashflow will Maria make by being a landlord? Maria can make per month Assume that she uses $ of her own money and an $ mortgage to purchase the property. Ignoring any increase in equity in her home and considering only her investment of $ what is her annual rate of return from the net rental cash flow? What are Maria's major risks associated with this investment? Round answer to decimal places, eg
Maria is thinking about purchasing a twobedroom condominium as a rental property investment.
She believes she can easily find a family to rent the property, or rent it out to travelers through a
room sharing service, and earn $ per month in rent. Her monthly expenses include a
mortgage with a payment of $ condo fees of $ taxes of $ insurance of $
and miscellaneous maintenance of $ Maria would also generate tax savings from
depreciation of the rental property which would generate a positive $ of savings that should
be included in her positive cash flows.
How much net annual cashflow will Maria make by being a landlord?
Maria can make
per month
Assume that she uses $ of her own money and an $ mortgage to purchase the
property. Ignoring any increase in equity in her home and considering only her investment of
$ what is her annual rate of return from the net rental cash flow? What are Maria's major
risks associated with this investment? Round answer to decimal places, eg
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