Art Neuner, an investor in real estate, bought an office condominium. The market

Question

Art Neuner, an investor in real estate, bought an office condominium. The market value of the condo was $210,000 with a 70% assessment rate. Art feels that his return should be 12% per month on his investment after all expenses. The tax rate is $31.50 per $1,000. Art estimates it will cost $275 per month to cover general repairs, insurance, and so on. He pays a $140 condo fee per month. All utilities and heat are the responsibility of the tenant. Calculate the monthly rent for Art. (Round your intermediate calculations and final answer to the nearest cent.) Monthly rent $

Explanation / Answer

Assessed Value = 210000 * 70% = $147000

Tax = $ 147 x $ 31.50 = $ 4630.50

Repairs and Insurance = $ 275 x 12 = $ 3300

Condo Fee = $ 140 x 12 = $ 1680

Total = $ 4630.50 + $ 3300 + $ 1680 = $ 9610.50

Monthly Rent = $ 9610.50 / 12 = $ 800.88

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