"Jorge bought a vacant rental suite in a downtown high-rise building on May 1, 2018....
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"Jorge bought a vacant rental suite in a downtown high-rise building on May 1, 2018. This was the first and only revenue property that he had ever owned. Before he advertised the property for rent, he remodeled both the kitchen and bathroom at a cost of $30,000. Jorge did not finance the renovation costs, he paid cash out of his savings. Once the renovations were complete, he secured a tenant starting June 1, 2018 at a monthly rent of $1,900. The apartment suite was rented for to the same tenant for the rest of the year. Jorge purchased the condo for $220,000 (the CCA rate for the class is 3%). He financed the purchase by way of a Home Equity LOC on the apartment with a balance of $176,000 and a rate of 3.90%. The LOC only requires that interest is paid and Jorge has no intention of making any payments towards the principal. During the year, Jorge paid $122.44/month for property taxes and $325/month in condo fees. In addition, he incurred the following expenses during the year: $42.00 for advertising, $192.48 for minor maintenance, $180 for insurance, as well as, $1,620 to replace the carpets in the unit." Calculate the net rental income, if any, for 2018? Question 13 options: $0 $610 $2,500 $3,110
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