Note: Before answering this question because the majority who answer it thinks its a question but its not. Its problem to be solved form Real estate investment the formula to the problem is : rent*units*months*years-cost

You own a four-unit apartment building that generates $3,500 per unit in rent each month.

Each unit is 3,000 sq. ft. in size and all units are occupied by long-term tenants. You want

to redevelop the building to have more units. You have two options: invest $200,000 to

convert the building to an 8-unit building or invest $300,000 to convert the building to a

10-unit building. Units in the larger reconfiguration will rent for $2,500 while units in the

smaller version will rent for $2,000. A local realtor has promised that she has clients that

will immediately rent the apartments upon project completion. It will take 18 months to

complete the project and all current tenants must leave if you redevelop.

a. Assume you are considering a seven-year investment window, should you

redevelop and at what level?