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6. Jim Hilbert bought a vacation condominium as a real estaterental property for $350,800. After a $90,000 down payment,he mortgaged the rest. His annual expenses totaled $29,790and he rented the condo for $3,200 per month.a. What is the annual net income?b. What is the annual yield?c. What monthly rent would he have to charge to get ayield of 11%?

User Ashley Bye
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1 Answer

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12 votes

Given:

Jim Hilbert bought a vacation condominium as a real estate rental property for $350,800. After a $90,000 down payment, he mortgaged the rest. His annual expenses totaled $29,790 and he rented the condo for $3,200 per month.

Required:

a. What is the annual net income?

b. What is the annual yield?

c. What monthly rent would he have to charge to get a yield of 11%?

Step-by-step explanation:

Rent of the property = $350,800

Downpayment

User Ricardo Pedroni
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