Real Estate Math
An Arizona investor needs a 10% cash-on-cash return. If they invest $80,000 as a down payment, what annual cash flow is required?
A$6,000
B$8,000✓ Correct
C$10,000
D$12,000
Explanation
Required cash flow = Investment × Required return = $80,000 × 10% = $8,000. To solve this, multiply the relevant values: $80,000 at 10%.. The correct answer is $8,000.. This is a common calculation on the Arizona real estate exam.
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