Real Estate Math
A Rhode Island investor receives monthly net rent of $2,000 on a property purchased for $300,000. What is the annual cash-on-cash return if the investor paid all cash?
A6%
B7%
C8%✓ Correct
D9%
Explanation
Annual net rent: $2,000 x 12 = $24,000. Cash-on-cash return: $24,000 / $300,000 = 0.
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