Real Estate Math

A Wisconsin investor wants to achieve a 12% cash-on-cash return on a $120,000 down payment investment. What minimum annual cash flow is required?

A$12,000
B$14,400✓ Correct
C$15,600
D$18,000

Explanation

Required annual cash flow = $120,000 × 12% = $14,400. To solve this, multiply the relevant values: $120,000 at 12%..

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