Real Estate Math
An Arizona investor purchases a 10-unit building for $1,200,000. Each unit rents for $1,200/month. What is the annual GRM?
A8.33
B10
C100✓ Correct
D83.3
Explanation
Monthly gross rent = 10 units × $1,200 = $12,000. Annual gross rent = $12,000 × 12 = $144,000. GRM = $1,200,000 ÷ $12,000 (monthly) = 100. (Note: Annual GRM = $1,200,000 ÷ $144,000 = 8.33).
Related Arizona Real Estate Math Questions
- A buyer obtains an $180,000 loan at 6% interest for 30 years. If the monthly payment factor is $5.996 per $1,000, what is the total amount paid over the life of the loan?
- An Arizona property has a tax rate of 10.5 mills (0.0105). The property is assessed at 10% of its $480,000 full cash value. What are the annual taxes?
- A property's assessed value is $225,000 and the property tax rate is 1.2%. What are the annual property taxes?
- A commercial space leases at $28 per square foot per year NNN. The space is 4,500 sq ft. What is the monthly base rent?
- An Arizona investor paid $400,000 for a property and wants a 9% return on investment. What annual net income is required?
- A broker earns a 6% commission. The commission is split equally between two offices. Each office then pays their agent 55%. If the sale price is $520,000, how much does each agent receive?
- A buyer can afford a maximum monthly payment of $2,400. If taxes are $200/month and insurance is $125/month, what is the maximum PITI payment, and how much is available for principal and interest (P&I)?
- Using the cost approach, a property has land valued at $80,000 and improvements that cost $320,000 to build but have depreciated 25%. What is the estimated value?
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →