Can you help me do only question 3 and 4? This is what we have come up with for Question #1.

Problems

Use internet (such as realtor.com, zillow.com) to pick a house or condo that you may be interested in investing as a rental property for 10 years. (suggested price range between $250k - $1 million)

1. (0.5 point) Estimate the annual rent, annual expenses (maintenance, property tax, insurance, etc), depreciation expense (per IRS rule, link below), closing cost, future home selling price (=salvage value). Use reasonable estimates, when forecasting.

house price	$349,900
annual rent	$28,800
annual expenses	$7,500	land	house	house estimate	house estimate-land
depreciation expense	$12,872.00	$39,980	$258,930	344000	304020
cost closing	$9,417
future home selling price	$488,600
Salvage Value	$3,490

2. (0.5 point). Calculate the initial outlay using your answers from Q1.

3. (0.5 point). Calculate the annual operating cash flow for yr 1, 2, , 10 using your answers from Q1.

4. (0.5 point). Calculate the terminal cash flow in yr 10 your answers from Q1.

5. (1 point) Calculate the internal rate of return (IRR) using your answers from Q2-Q4.

6. (0.5 point) Estimate the cost of capital (WACC) to finance your investment. Assume 30% of investment is financed by your own equity and the other 70% is financed by a mortgage loan.

7. (1 point) Calculate the net present value of the investment using your answers from Q2-Q4 and Q6.

8. (0.5 point) Discuss whether your rental property is a good investment or not.