Real Estate Math
A property earns $3,000 per month in rent. Property taxes are $6,000 per year, insurance is $1,200 per year, and maintenance costs $3,600 per year. The annual debt service is $18,000. What is the annual cash flow after debt service?
A$7,200✓ Correct
B$5,400
C$6,000
D$4,800
Explanation
Annual rent: $3,000 × 12 = $36,000. Annual expenses: $6,000 + $1,200 + $3,600 = $10,800. NOI: $36,000 − $10,800 = $25,200. Cash flow after debt service: $25,200 − $18,000 = $7,200.
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