How to solve

Problem points$]$

Determine the annual Net Operating Income $($NOI$)$ and the cash flow before taxes using the assumptions and facts for the following real estate investment:

a$)40$ Units

b$)$ Rent per unit is $$1,500$ per month

c$)$ Vacancy and debt lsseses are $5\%$ of gross potential income

d$)$ Operating Expenses are $$426,000$ per year

e$)$ Debt service is $106,000,$ which includes $$90,000$ in interest

f$)$ Depreciation expense is $$46,000$ per annum.

Using the above information, determine the Taxable Income or Loss.