Little sister Arya Stark decides she wants to pursue a career in real estate like the men
Fantastic news! We've Found the answer you've been seeking!
Question:
Little sister Arya Stark decides she wants to pursue a career in real estate like the men in her family. Her approach, however, will be different. She vows to view market conditions clearly and unemotionally, and to be disciplined and hardworking in managing her assets.
- She decides to try her luck in a new market with sunnier economic conditions. She purchases a partially empty building with great potential that has revenues of 175,000 and expenses of 80,000. Arya is a real estate rock star. Her revenues increase by 20% in Year 2 and 5% each year thereafter. Her expenses increase at 2% per year. If she sells the building for $3,135,000 to Cersei Lanister at the end of Year 5 on her in-place income, what cap rate will she report she sold it for?
- Cersie Lanister sees that she purchased the property on forward income. What cap rate will she report that she bought the property for?
Related Book For
South-Western Federal Taxation 2019 Essentials Of Taxation Individuals And Business Entities
ISBN: 9781337702966
22nd Edition
Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
Posted Date: