If a property is worth $115,000 and an investor wants an annual return of 12%, what is the required monthly net income?

To determine the required monthly net income for an investor wanting a specific annual return, first, we calculate the desired annual income based on the property's value and the targeted return rate.

Given the property value of $115,000 and the desired annual return of 12%, the calculation for the annual income is straightforward. Multiply the property value by the return rate:

Annual Income = Property Value × Return Rate
Annual Income = $115,000 × 0.12
Annual Income = $13,800

Next, to find the required monthly net income, we divide the annual income by 12 (the number of months in a year):

Monthly Net Income = Annual Income ÷ 12
Monthly Net Income = $13,800 ÷ 12
Monthly Net Income = $1,150

Thus, the required monthly net income that the investor needs to achieve a 12% annual return on a property valued at $115,000 is $1,150. This answer aligns with the investor's goal of ensuring that the property generates sufficient cash flow to meet their return expectations.