#2885
A seller wants to trade his residence at a price of $157,500 subject to a mortgage with a balance of $62,400 for a multi-family housing unit with a price of $623,500 with a mortgage of $366,750.
What's the amount of the total cash difference ?
Remember to take your time. The solution is posted below the wildlife photo.
A. $161,650
Let's subtract the mortgage balances from the price of each property.
Subtract the $62,400 mortgage balnce from the first proerties sale price of $157,500 to find 95,100 dollars (which could be considered equity if we're considering value).
Now let's subtract the mortgage balance from the selling price of the property the seller wants to trade for by subtracting the mortgage balance of $366,750 from the selling price of $623,500 to find a cash difference of $256,750 in the multi-family unit.
Now subtract the difference in the first property of 95,100 dollars from the differnce of $256,750 in the second property to see that the total difference is $161,650.
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