A property generates $80,000 in net operating income. You purchase the property at a 6.4% cap rate

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A property generates $80,000 in net operating income. You purchase the property at a 6.4% cap rate and then sell it at a 5% cap rate one year later after receiving the net operating income at the end of the first year.

What is your internal rate of return?

Related Book For answer-question

Real Estate Finance and Investments

ISBN: 978-0073377339

14th edition

Authors: William Brueggeman, Jeffrey Fisher

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Posted Date: Apr 27, 2023 12:06 AM

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A property generates $80,000 in net operating income. You purchase the property at a 6.4% cap rate

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To calculate the internal rate of return IRR on this investment we need to determine the initial pur... View the full answer

Real Estate Finance and Investments

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