Question 2: Select the properties for comparison. After determining the maximum house value for Emmas budget in Question 1, select a house that Emma can afford and follow the instruction for the case. Instructions for property selection: Use the maximum purchase amount established in the first part of this question to select a house for purchase and use the Emmas monthly budget as a maximum amount for rental payments per month. Go to an online site that offers real estate for sale and rent. Examples of these are Zillow.com, Trulia.com, Redfin.com or Realtor.com. Select one property (it could be a condominium, townhouse, or house) that is for sale. Please provide the link and images (2 pictures maximum) for the property selected. Also state within your document the purchase price of the house. Special Note: You may use the taxes, insurance, and HOA fees included in the information on Zillow, Trulia, etc., but you must use the mortgage information that is provided in this case study to calculate the costs associated with this decision. Find a rental property near the property that is for sale that you/your team selected. This rental property must stay within the budget. Where possible, select a comparable property based on square footage, lot size, type of property, number of bedrooms and number of bathrooms.) Please provide the links and images (2 pictures maximum per house) for the comparable property selected. Also state within your document the monthly rental payment of the property. (5 points)

Buy price of House: 205,000

Based on the house you selected for purchase in Question 2, determine the opportunity costs, of using required funds for closing (i.e., down payment plus all closing costs), rather than investing the funds and earning an effective rate of 6.0% yearly. The down payment amount will be 20% of the purchase price of the house you selected. For estimation purposes, closing costs will be $3,000.00.

Calculate the amount of forgone interest on investment

a. Two years

b. Three years

c. Six years

d. Eight years

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