Question: PLEASE HELP For the two multiple choice questions #1 options are commerical or residential #2 an open-end or a closed-end 7. Choosing a real estate
7. Choosing a real estate investment Comparing Real Estate Investments Suppose Carlos wants to invert in real estate and is condidering two different residential properties. Bused on the expected inconses and operating expenses of each, he estimates that the fint propeity (property A) has an wot of $42,000 and that the other (property 0 ) has an Nor of 530,000 . If the cap rate is 10%, kroperty A has an estimated value of and preperty 8 has an estimated value of . In deciding between these two properties, it is important for Carios to consider other factors. If he is a first-time investor, be is prebably better off investing in property. (Note: Hound your answers to two decimal places.) Altematively. Carlos milaht want to conslider investing in a real estate investment trust (RFI), a type of investmoent company that operates similarly to mutual fund: Which of the following statements regurding muths are true? Chock atl thar apply. Ther pay dividendi. They alow individuals to buy shares in a real estate based stock portolio, They can increase the diversilication of indilduals who are already invested in the stock market. The value of RErTs tends to move in the same drection as the peneral stock market
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