1. You are considering buying the house next to your home, in order to fix it up and sell it to make a profit. You estimate that you will need to invest about $5,000 to make necessary repairs and...

1. You are considering buying the house next to your home, in order to fix it up and sell it to make a profit. You estimate that you will need to invest about $5,000 to make necessary repairs and upgrades. After these improvements, you should be able to sell it for $185,000. If the general guideline for flipping is to buy at least 20% below the market value, what is the most you should be willing to pay for the home?

2. You bought a lot for $20,000 and have paid $75 a year in taxes for the past five years. A new golf course is going in across the street, and you have been approached by a buyer to sell your lot for $95,000. What will be your ROI?