Real Estate Investments: Quiz Flashcards

Real Estate Investments: Quiz Flashcards

You purchase a home for $125,000. The value of the property increases by 1.9% every year. After ten years, you decide to sell the home. In the meantime, you have made renovations and improvements to the house which increase its sale value by $48,300. How much will you sell the house for, to the nearest hundred dollars?Notb.$209,200 Wayne is planning to sell the twenty-room apartment building he bought fifteen years ago, for which he paid $759,000. The real estate market in his area has been falling since that time, and the property has decreased in value by 3.8% every year. Wayne rents each of his apartments for $495 per month, and upkeep on the building costs him $26,400 annually. Assuming that Wayne has kept his apartment complex constantly three-quarters full, what will his net profit or loss be when he sells the building, to the nearest hundred dollars?d.$606,000 profit In which way do REITs resemble mutual funds? a.Money is invested in a fund that is controlled by a board, and dividends are paid out to the investors.Edward purchased his home for $89,000. For the first three years after he moved in, the real estate market was very lively, so his property value grew by 4.8% every year. For the next five years, the market slowed down somewhat, and his property value grew by 2.6% every year. How much had the value of Edward's home increased after eight years, to the nearest hundred dollars?Notd. $13,200orc. $30,000 What is a real estate investment group?a.A collection of investors who pool their resources in order to purchase and manage property for a profit.What is "house flipping?"b.The process of buying a house with the intention of selling it for a profit after only a short time.Four years ago, Ted bought two rental homes for a total of $460,000. Since then, the homes have been increasing in value at a rate of 3.1% per year. Upkeep on the homes costs Ted $1,430 per year per home, and he rents them out at a monthly rate of $820 each. Both homes have been rented out constantly since Ted bought them. Between revenue gained from renting out the homes and appreciation on the property, which aspect of Ted's investment has increased in value more, and by how much more has it increased, to the nearest dollar?c.Ted will gain $7,532 more from the rent than from the appreciation.Aria paid $75,000 for her house. Its property value increased by 2.2% per year. When Aria sold her house

after eleven years, how much was it worth, to the nearest hundred dollars?c.$95,300

Gareth bought a home for $135,000. The home gained 2.2% in value every year for eight years until Gareth sold it.How much profit did Gareth make, to the nearest hundred dollars?

• $25,700

Joseph paid $105,000 for his home twenty years ago.Since then, his house has increased its property value by 2.0% every year. In addition, Joseph has made renovations and improvements to the house which will increase its sale value by $28,700. If Joseph sells his home, how much profit will he make, to the nearest hundred dollars?a.$79,700 Matthew paid $779,000 for a ten-room apartment building nine years ago. The building has lost 2.7% of its value every year. Matthew keeps all of his rooms rented out continually, charging a monthly rent of $810 per room.Upkeep on the building costs Matthew $35,900 every year.If Matthew sells the building, what will his total profit be, to the nearest hundred dollars?Notc.$362,400 Vincent owns an apartment building containing 15 rental units. Vincent pays $22,690 in taxes and building upkeep every year, and charges rent of $833 per month.Assuming that all of the rental units are full, how much does Vincent make from his apartment building every year?a.$127,250