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The published sale price of a small apartment building comparable sale was $245,000. The buyer and seller agreed to the purchase of the property for $245,000, with the seller taking back a purchase money mortgage of $175,000 at 7% interest for 30 years with a balloon payment in six years. The payments were monthly. The market interest rate for a property like this at the time of sale was at 9% with no points. Determine the cash-equivalent sale price using the calculator yield-to-market technique and assuming that the buyer would keep the financing in place for six years. Round your answer to the nearest increment of $25,000.
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