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You own a house that you rent for $1,200 a month. The maintenance expenses on the house average $200 a month.

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You own a house that you rent for $1,200 a month. The maintenance expenses on the house average $200 a month. The house cost $89,000 when you purchased it several years ago. A recent appraisal on the house valued it at $210,000. The annual property taxes are $5,000. If you sell the house you will incur $20,000 in expenses.You are deciding whether to sell the house or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office?

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Solution Summary

This is a response calculating whether it is worth converting a house that you rent into a professional office. The solution takes rent, maintenance expenses, appraisals, and taxes into consideration.

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What value should you place on this house when analyzing the option of using it as a professional ...

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