Real Estate Math
An investment property generates $48,000 NOI. Debt service (mortgage payments) totals $32,000 annually. What is the annual cash flow before taxes?
A$16,000✓ Correct
B$48,000
C$32,000
D$80,000
Explanation
Cash flow before taxes = NOI − Debt Service = $48,000 − $32,000 = $16,000. Using the values given ($48,000, $32,000), apply the appropriate formula..
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