Personal Finance 1st Edition by Jack R. Kapoor

Exercise 21

Problems 5 and 6 are based on the following scenario: Calculating Profit or Loss on a Rental Property. Felice bought a duplex apartment at a cost of $150,000. Her mortgage payments on the property are $940 per month, $121 of which can be deducted from her income taxes. Her real estate taxes total $1,440 per year, and insurance costs $900 per year. She estimates that she will spend $1,000 each year per apartment for maintenance, replacing appliances, and other costs. The tenants will pay for all utilities. (Obj. 1)

What monthly rent must she charge for each apartment to break even?