1. Why is illiquidity an important consideration in comparing real estate with other types of investment? 2....

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1. Why is "illiquidity" an important consideration in comparing real estate with other types of investment?

2. What are the main advantages of a residential property as an investment?

3. Why is debt service expense in an income property subtracted from net operating income to calculate pre-tax cash flow, while only the interest expense portion of debt service is subtracted from net operating income to calculate tax liability?

real estate

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Operations Management

ISBN: 978-0078024108

12th edition

Authors: William J Stevenson

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Posted Date: Jan 10, 2021 03:07 PM

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1. Why is illiquidity an important consideration in comparing real estate with other types of investment? 2....

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Expert Answer:

Quiz 1 The phrase illiquidity is usually defined to mean the inability to convert some type of investment into cash within a reasonable period or at a reasonable price For example if Bob wants to take ... View the full answer

Operations Management

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