Let us calculate the move-in costs of both properties.
Rental Property
The monthly rent is $1,350.
The move-in costs are:
First month = $1,350
Last month = $1,350
Security deposit = 55% of one month's rent
[tex]\Rightarrow\frac{55}{100}\times1350=742.5[/tex]Therefore, the move-in cost is:
[tex]\Rightarrow1350+1350+742.5=3442.5[/tex]Purchase Property
The purchase price is $195,450.
The move-in costs are:
Down payment of 18% of purchase price:
[tex]\Rightarrow\frac{18}{100}\times195450=35181[/tex]Closing costs of 2.1% of purchase price:
[tex]\Rightarrow\frac{2.1}{100}\times195450=4104.45[/tex]Therefore, the move-in cost is:
[tex]\Rightarrow35181+4104.45=39285.45[/tex]Difference in Total Move-In Cost
This is calculated to be:
[tex]\Rightarrow39285.45-3442.5=35842.95[/tex]ANSWER
The difference in total move-in cost is $35,842.95
