Many Investors Use Mortgage Debt to Help Finance Capital Investment

Many investors use mortgage debt to help finance capital investment for income-producing real estate. In doing so, the owner will receive income as long as the property produces enough income to cover all operating and capital expenditures, the mortgage payment, and all state and federal income taxes. Therefore, the owner's claim is commonly referred to as a:

A) primary claim
B) joint claim
C) residual claim
D) superior claim