Real Estate Math
A 12-unit apartment building sells for $1,440,000. Annual gross rents are $120,000. What is the Gross Rent Multiplier (GRM) using annual rents?
A10
B12✓ Correct
C14
D8.33
Explanation
GRM (annual) = Sale price ÷ Annual gross rent = $1,440,000 ÷ $120,000 = 12. Using the values given ($1,440,000, $120,000), apply the appropriate formula.. The correct answer is 12.. This is a common calculation on the Arizona real estate exam.
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