Real Estate Math

An Iowa landlord charges $950/month for a unit. The property taxes are $3,600/year, insurance is $1,200/year, and maintenance is $1,800/year. What is the annual net operating income?

A$4,800✓ Correct
B$4,200
C$4,080
D$5,400

Explanation

Annual gross rent = $950 × 12 = $11,400. Total expenses = $3,600 + $1,200 + $1,800 = $6,600.

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