Real Estate Math
A Maine investment property has a net operating income of $54,000 and annual debt service of $42,000. The annual cash flow before taxes is:
A$8,000
B$10,000
C$12,000✓ Correct
D$14,000
Explanation
Cash flow before taxes = NOI − Annual Debt Service = $54,000 − $42,000 = $12,000. Using the values given ($54,000, $42,000), apply the appropriate formula..
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