Felice bought a duplex apartment at a cost of $150,000. her mortgage payments on the property are $940 per month, $121 of which can be deducted from her income taxes. her real estate taxes total $1,440 per year, and insurance costs $900 per year. she estimates that she will spend $1,000 each year per apartment for maintenance, replacing appliances, and other costs. the tenants will pay for all utilities. what monthly rent must she charge for each apartment to break even

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Business

Jovanny Dyer

6 May, 10:24

Felice bought a duplex apartment at a cost of $150,000. her mortgage payments on the property are $940 per month, $121 of which can be deducted from her income taxes. her real estate taxes total $1,440 per year, and insurance costs $900 per year. she estimates that she will spend $1,000 each year per apartment for maintenance, replacing appliances, and other costs. the tenants will pay for all utilities. what monthly rent must she charge for each apartment to break even

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Nathanial Shah · Answer 1

First, add up the expenses that she pays yearly and then divide by 12 to know the mostly cost.

Real estate taxes = $1,440

Insurance costs = $900

Misc. costs = $1,000

Total = $3,340

Monthly costs = $3,340/12

Monthly costs = $278.33

Her mortgage payment = $940

Deducts $121 from income taxes

$940 - $121 = $819

Total minimum she should charge is = $819 + $278.33

Monthly payment for rent = $1,097.33