Real Estate Math
A Maine investor wants a 10% cash-on-cash return. They invest $80,000 in equity on a rental property. The annual cash flow (before taxes) needed is:
A$6,400
B$7,200
C$8,000✓ Correct
D$8,500
Explanation
Required cash flow = $80,000 × 10% = $8,000. To solve this, multiply the relevant values: $80,000 at 10%..
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