Real Estate Math
A Minnesota investor earns $2,000 per month on a $300,000 rental property after all expenses. What is their annual cash-on-cash return if they put 25% down?
A9.6%
B8.0%
C3.2%
D12.8%✓ Correct
Explanation
Annual cash flow = $2,000 x 12 = $24,000. Cash invested (down payment) = $300,000 x 25% = $75,000.
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