Question
Felice bought a duplex apartment at a cost of $155,000. Her mortgage payments on the property are $1,370 per month, $638 of which can be
Felice bought a duplex apartment at a cost of $155,000. Her mortgage payments on the property are $1,370 per month, $638 of which can be deducted from her income taxes. Her real estate taxes total $1,728 per year, and insurance costs $1,368 per year. She estimates that she will spend $1,500 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? (Do not round intermediate calculations. Round your answer to 2 decimal places. Ignore any tax effects.)
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