Question

Anne Deno purchased a house to fix up and use as a rental property. The house sold for $123,400. Anne made a $23,400 down payment and mortgaged the rest. Her annual expenses for mortgage interest, taxes, repairs, insurance, and depreciation totaled $8,750. Anne rented the house for $960 per month. What is the annual net income?

Answer 1

The annual net income is $2770

Explanation:

The annual net income on the rental property is the yearly rental minus the yearly annual expenses which consist mortgage interest,taxes, repairs,insurance as well as annual depreciation totaling $8,750

Annual rental =monthly rental* 12 months=$960*12=$ 11,520.00

Annual net income=$ 11,520.00-$8,750.00=$2,770

The annual net income is the gain that accrues to Anne Deno for purchasing the rental property and the subsequent letting to tenants