Real Estate Math

An investor in Hawaii purchases a 6-unit property for $1,800,000 with a 30% down payment. What is the equity at closing?

AA. $540,000
BB. $1,260,000✓ Correct
CC. $360,000
DD. $480,000

Explanation

Down payment (equity) = $1,800,000 × 30% = $540,000. The loan amount = $1,800,000 × 70% = $1,260,000.

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