Felice should charge $16,620 to make $2,000 in profit each year on the duplex apartment.
Data and Calculations:
Mortgage loan = $150,000
Mortgage monthly payment = $940
Mortgage yearly payment = $11,280 ($940 x 12)
Real estate taxes = $1440
Insurance cost per year = $900
Property maintenance = $1,000
Total PITI (Principal + Interest + Taxes +Insurance) = $14,620
Expected profit = $2,000
Total revenue per year = $16,620 ($14,620 + $2,000)
Thus, Felice should charge $16,620 to make $2,000 in profit each year on the duplex apartment.
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