Patty Lo Purchased a House That She Planned to Use

Multiple Choice

Patty Lo purchased a house that she planned to use as a rental property for $300,000. During the past year, she rented the house for $1750 per month. Property taxes were $3900 for the year, and other expenses were $450 for a new garage door opener and $650 for lawn care. The current appraised value of the property is $315,000. What is Patty Lo's income yield?

A) 7%
B) 5.7%
C) 5.6%
D) 5.3%
E) 6.6%