Real Estate Math
A Kansas property investor requires a minimum 10% cash-on-cash return. They invest $80,000 in equity. What minimum annual cash flow do they require?
A$6,000
B$8,000✓ Correct
C$10,000
D$12,000
Explanation
Minimum cash flow = $80,000 × 0.10 = $8,000 per year. To solve this, multiply the relevant values: $80,000 at 10%.. The correct answer is $8,000.. This is a common calculation on the Kansas real estate exam.
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