Question: a) Compare two homes one in Lubbock, TX with a purchase price of $125,000 which would bring in $12,000 in annual rent and one in

a) Compare two homes one in Lubbock, TX with a purchase price of $125,000 which would bring in $12,000 in annual rent and one in Dallas, TX with a purchase $330,000 and $12,000 in annual rent. b) Which home would give the investor the highest yield on the investment? 3. Loan-to-Value Ratio What is the Loan-to-Value Ratio or the amount of leverage in the real estate investment if you put 45% down on a home which you are paying $375,000? Loan-to-Value Ratio = Mortgage Amount / Appraised Value of the Property

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