Real Estate Math
A Virginia investor's property has annual gross rent of $42,000, expenses of $16,000, and debt service of $18,000. What is the annual cash flow?
A$8,000✓ Correct
B$6,000
C$26,000
D$4,000
Explanation
NOI = $42,000 – $16,000 = $26,000. Cash flow = $26,000 – $18,000 debt service = $8,000.
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