Real Estate Potential Rent 1478 34th Avenue has 5 Bedrooms and 4 Bathrooms on 2,
ID: 2560149 • Letter: R
Question
Real Estate
Potential Rent 1478 34th Avenue has 5 Bedrooms and 4 Bathrooms on 2,425 square feet of living space. You want to use most of the upstairs area as living area for your family. The bottom has two bedrooms with a shared living room. Each bathroom at the bottom has their own separate bathroom. Each bedroom is 15 by 20 feet (300 square feet). Average rental by square feet is $50 per square feet per month. In addition to the bottom living area, you believe that you can rent one of your top living area bedrooms for a net of $100 per night for roughly twenty nights in a thirty-day month. What would be your estimated rental income from your house? What is the difference between your rental income and the total cash flow as calculated in the Total Cost of Ownership tab?Explanation / Answer
Estimated rental income from your house :-
From Two bedroom at bottom
(300sq feet*2*50)=$30,000
From one of top living area bedrooms
(100*20)=$ 2,000
Total estimated rental income
=30,000+2,000=$32,000
Difference between rental income and total cash flow as calculated in the total cost of ownership tab:
=(2,425*50)-32,000(as calculated above)
$121,250-$32,000=$89,250
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