Real Estate Math
An investor wants a 10% cash-on-cash return on a $100,000 down payment. What annual before-tax cash flow is required?
A$8,000
B$10,000✓ Correct
C$12,000
D$15,000
Explanation
Required cash flow = $100,000 × 10% = $10,000. To solve this, multiply the relevant values: $100,000 at 10%.. The correct answer is $10,000.. This is a common calculation on the Georgia real estate exam.
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