Real Estate Math
A Maine real estate investor uses the 1% rule to screen rental properties. Under this rule, the monthly rent should be at least 1% of the purchase price. For a $250,000 property, the minimum monthly rent should be:
A$1,500
B$2,000
C$2,500✓ Correct
D$3,000
Explanation
$250,000 × 1% = $2,500 minimum monthly rent under the 1% rule. To solve this, multiply the relevant values: $250,000 at 1%.. The correct answer is $2,500.. This is a common calculation on the Maine real estate exam.
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