Question: Tom purchased a four - plex property for $ 9 0 0 , 0 0 0 . Each unit rents for $ 2 , 0

Tom purchased a four-plex property for $900,000. Each unit rents for $2,000 per month. Tom incurs the following annual expenses: property taxes ($9,600), homeowners insurance ($1,500), maintenance ($4,000). After one year, he realizes he has to increase rents by 5% to keep up with market demand. What will be Tom's adjusted annual cash flow after the rent increase and before taxes? A. $32,000 B. $36,000 C. $41,000 D. $42,000 E. $44,000

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