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
