Real Estate Math
A Florida investor wants to receive a 10% cash-on-cash return on their $100,000 down payment investment. The property has a monthly mortgage payment of $800 and monthly operating expenses of $300. What minimum monthly rent must the investor charge?
A$1,933✓ Correct
B$1,100
C$833
D$1,433
Explanation
Required annual cash flow = $100,000 × 10% = $10,000. Monthly cash flow needed = $10,000 ÷ 12 = $833.
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