Real Estate Math

A property has a gross income of $75,000, expenses of $30,000, and debt service of $25,000. What is the before-tax cash flow?

A$20,000✓ Correct
B$45,000
C$25,000
D$50,000

Explanation

NOI = $75,000 − $30,000 = $45,000. Before-tax cash flow = $45,000 − $25,000 = $20,000.

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