Real Estate Math
A 10-unit apartment building has all units renting at $925/month. The gross rent multiplier is 8 (annual). What is the estimated value?
A$888,000✓ Correct
B$1,110,000
C$754,800
D$750,000
Explanation
Annual gross rent = 10 × $925 × 12 = $111,000. Value = $111,000 × 8 = $888,000.
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