Upon acquiring a 25-unit rental condominium at a cost of $5,000,000, you made a down payment of $3,000,000, financing the remaining amount through a mortgage. The property is leased at a gross rent of $30,000 per unit per year. Anticipated operating expenses, encompassing the mortgage cost, are estimated at 50%, and the average vacancy rate in the building stands at 10%. 

What would be the expected Return on Equity (ROE) for this investment?

Answer rating: 100% (QA)

To calculate the expected Return on Equity ROE for this investment we need to consider the net incom... View the full answer