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Furkat
21 day ago
12

Using the 1% rule-of-thumb, a rental property that gererates $1,000 per month in gross rents could potentially be a very good de

al if it were listed for a sale price of A. $150,000 B. $185,000 C. $120,000 D. $75,000
Business
1 answer:
soldi70 [3.1K]21 day ago
4 0

Response: $75,000

Clarification:

According to real estate principles, the 1% rule suggests evaluating property prices. It asserts that the rent should be at least 1% of the property's purchase price on a monthly basis.

The greater the rental percentage over 1%, the better the deal.

In this scenario, the most suitable option would be $75,000 since;

1,000 divided by 75,000 multiplied by 100 results in

1.33%.

The $1,000 falls above 1% of $75,000, making it a very good investment.

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