Alvaro owns a duplex with two equal size units. He lives in one; on January 1, 2022 he placed the other unit in service as a rental. His tenant, Gerard, moved in that month. During 2022, Gerard paid $12,000 in rent, and Alvaro paid the following expenses: $350 plumber bill for faucet repair in the rental unit. $3,100 insurance for the entire property. $2,700 real estate taxes. $6,800 mortgage interest. $525 legal fees to set up the rental contract. Based on this information, what are Alvaro's allowable Schedule E expenses for 2022?

$6,300

$6,650

$6,825

$7,175