You purchase a rental for $48,000 that rents for $725. Expenses are 1/3 of the gross rent. If you borrowed 75% of the purchase price at 7% and applied all of the net rent to the payment, how fast could you pay off the loan?
(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)
Answer to 02-14-2011 problem:
50.48% (N=48, PV= -2250, PMT=109.84, FV=0)
(N=48, I=11, PV=4250, FV=0)