Question

Using this information, consider the three following real estate investment strategies, and rank them from least to greatest according to how much profit they would likely make in this market, assuming that each of them purchased a house in this area at year 0. I. A house flipper, seeking to sell the house as soon as doing so becomes profitable, sells after 4 years. II. A long-term investor, seeking to hold onto the house for a long time, sells after 23 years. III. A moderate-term investor who will sell the house once it reaches a certain price, sells after 11 years. a. I, II, III b. II, I, III c. III, I, II d. Each of them will make roughly as much profit as the others

Answer 1

the answer is B. ll, l, lll

Answer 2

Answer:

B) II, I, III

Step-by-step explanation:

I. A house flipper, seeking to sell the house as soon as doing so becomes profitable, sells after 4 years.  Here instead of selling before he opted for selling after 4 years thus reducing profit.

II. A long-term investor, seeking to hold onto the house for a long time, sells after 23 years.

This is correct method since he decided to invest for long term,23 years is reasonable and he sold after it.

. III. A moderate-term investor who will sell the house once it reaches a certain price, sells after 11 years

11 years is not a moderate term it is a long term only.  

Thus by ranking we find that this comes under

II, I, III