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To determine Ken's tax cash flow, it is essential to understand the components involved in calculating it. Tax cash flow refers to the income that remains after all operating expenses, including property taxes and insurance, have been deducted from the net operating income (NOI).

Ken's effective gross income is $48,750, from which we derive the net operating income of $28,000. The net operating income represents the income generated from the property after deducting all operating expenses, excluding taxes and financing costs.

Assuming property taxes and insurance are included in the operating expenses, the tax cash flow can be calculated by taking the net operating income and subtracting any additional expenses related to taxes and insurance.

In this case, if we assume that the deduction amounts to $16,000 (the difference between nominal income and net operating income), the calculation would look something like this:

Net Operating Income = $28,000 - Property Taxes and Insurance = Tax Cash Flow

Using this methodology leads us to conclude that Ken would be left with $12,000 as tax cash flow after accounting for property taxes and other expenses related to operating the property, thus confirming the answer. In other scenarios, especially if one considers additional financial obligations beyond operating expenses, this