Considering buying a house and renting

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You are considering buying a house and renting it to students. The yearly operating costs are $2,050. The house can be sold for $335,000 at the end of 10 years and it is considered 18% to be a suitable annual effective interest rate. If the house costs $175,000 to purchase, how much would you need to charge your tenants each year in rent? (Assume a single payment for the years rent at the end of each year)

Reference no: EM13802598

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Considering buying a house and renting : You are considering buying a house and renting it to students. The yearly operating costs are $2,050. The house can be sold for $335,000 at the end of 10 years and it is considered 18% to be a suitable annual effective interest rate. If the house cos..

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