Real Estate Math
An Iowa property's net income before debt service is $45,000. Annual mortgage debt service is $28,000. What is the cash flow before taxes?
A$17,000✓ Correct
B$45,000
C$73,000
D$28,000
Explanation
Cash flow before taxes = NOI - Debt Service = $45,000 - $28,000 = $17,000. Using the values given ($45,000, $28,000), apply the appropriate formula..
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