Felice bought a duplex apartment at
a cost of $245,000. Her mortgage payments on the property are
$1,040 per month. Her real estate taxes total $1,632 per year, and
insurance costs $1,476 per year. She estimates that she will spend
$1,236 each year per apartment for maintenance, replacing
appliances, and other costs. The tenants will pay for all
utilities. Ignore income taxes, changes in equity value, and
changes in property value.
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