4 Problem 17-5 Calculating Profit or Loss on a Rental Property [LO17-1] Felice b

Question

4 Problem 17-5 Calculating Profit or Loss on a Rental Property [LO17-1] Felice bought a duplex apartment at a cost of $215,000. Her mortgage payments on the property are $1,730 per month, $740 of which can be deducted from her income taxes. Her real estate taxes total $1,920 per year, and insurance costs $1,296 per year. She estimates that she will spend $1,314 each year per apartment for maintenance, replacing appliances, and other costs. The tenants will pay for all utilities. 10 points Skipped What monthly rent must she charge for each apartment to break even? (Do not round intermediate calculations. Round your answer to 2 decimal places. Ignore any tax effects.) Ask Rent per apartment to break even Print References

Explanation / Answer

(in $) cost 215000 mortgage payment 1730 pm yearly effective mortgage payment 990*12 (1730-740=990) real estate taxes 1920 pa insurance cost 1296 pa repairs and maintenance 1314 pa total cost 231410 Cost per month to breakeven 19284.17

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