Lisa expects a potential investment in a rental property to have gross income of $1,000,000 per year. She anticipates $150,000 in living expenses, $300,000 in wages, $100,000 in utilities, $200,000 in depreciation, and a mortgage payment of $150,000. Her principal payment would be $50,000 and interest expense would be $100,000. How much should Lisa pay for the rental property if her required rate of return is 12%?

Answer rating: 100% (QA)

To calculate the value of the rental property we need to find the net operating ... View the full answer