You are offered a four-unit residential building in which each unit rents for $500 per month. Given a 5 percent vacancy rate, operating expenses of $700 per month, and mortgage payments of $1,500 per month, you can anticipate a monthly

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This property would produce a negative cash flow of $300. $500 × 4 = 2,000. 2,000 ×.05 = 100. $2,000 - 100 - 700 - 1,500 = -300.

You Are Offered a Four-Unit Residential Building in Which Each