Question

Art Neuner, an investor in real estate, bought an office condominium. The market value of the condo was $250,000 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.)

Answer 1

Particulars	Amount
Market value	250000
× required return	12%
Required return	30000
Per month return	2500
Market value	$        250,000
× Assessment rate	70%
Assessable value	$        175,000
× rate 31.50/1000	0.0315
Property tax	$       5,512.50
Per month tax	$          459.38
Particulars	Amount
Property tax per month	$          459.38
Condo fee	$          140.00
Repairs	$          275.00
Required return	$       2,500.00
Rent per month	$       3,374.38

Answer is $3,374.38

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