THE SCENARIO
Back during the crash, my friend Marie picked up a nice two-bedroom condo for $93,600. She's been collecting rent from the property for the past 6 ½ years or so, but on a lark she decided to check its current value. Marie was blown away to learn that she could probably sell the property for $315,000 today (in May of 2018). If she were to do so, she's curious as to what her return on investment would be.
The question: Marie bought the condo in January of 2012, and has averaged $200 per month in net rent over the time she's owned it. When she bought the condo, she put 20% down and borrowed the rest. She currently owes $65,500 on the mortgage. Assume that it costs Marie 10% of the sales price of the condo to sell the condo. For the purposes of this question, ignore capital gains/income taxes an...
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