Real Estate Math
An Arizona investor buys a rental property for $250,000. Annual rent is $24,000, operating expenses are $8,000, and annual mortgage payments are $14,400. What is the annual cash flow before taxes?
A$1,600✓ Correct
B$2,400
C$3,200
D$16,000
Explanation
NOI = $24,000 - $8,000 = $16,000. Cash flow before taxes = NOI - Mortgage payment = $16,000 - $14,400 = $1,600.
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