A property that produces an annual NOI of $100,000 was purchased for $1,200,000. Debt service for the year was $95,000 of which $93,400 was interest and the remainder was principal. Annual depreciation is $38,095. What is the passive income?

Question 4 options:

1)

$5,000

2)

$6,600

3)

-$31,495

4)

-$33,095