Real Estate Math
A Kentucky investor purchases a rental property for $185,000 with 25% down. The annual mortgage payment is $11,400. NOI is $18,000. What is the annual cash flow before taxes?
A$6,600✓ Correct
B$4,500
C$18,000
D$7,200
Explanation
Cash flow = NOI minus Debt Service. $18,000 minus $11,400 = $6,600.
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