Property Valuation
A property has a gross monthly rent of $2,000. Comparable properties have sold at a Gross Rent Multiplier (GRM) of 120. What is the estimated value?
A$200,000
B$240,000✓ Correct
C$180,000
D$260,000
Explanation
Value = GRM × Monthly Rent. $2,000 × 120 = $240,000. The GRM is a quick income-valuation shortcut, though it does not account for vacancies or expenses.
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