Real Estate Math
An Arizona rental property is purchased for $280,000. Annual gross rent is $26,400. What is the gross rent multiplier (using annual income)?
A8.5
B10.6✓ Correct
C12.7
D9.8
Explanation
Annual GRM = Purchase price ÷ Annual gross rent = $280,000 ÷ $26,400 = 10.61 ≈ 10.6. Using the values given ($280,000, $26,400), apply the appropriate formula.. The correct answer is 10.6.. This is a common calculation on the Arizona real estate exam.
Related Arizona Real Estate Math Questions
- A quarter section of land is sold at $2,500 per acre. What is the total sale price?
- If a listing is taken at a 6.5% commission and the listing office retains 3% while the selling office receives 3.5%, what does each office earn on a $285,000 sale?
- A 6% commission is split 50/50 between the listing and selling brokers. The selling broker splits 70% with their salesperson. If the sale price is $460,000, how much does the selling salesperson receive?
- A property has an assessed value of $180,000. The city tax rate is $12.50 per $1,000 of assessed value, and the county tax rate is $8.75 per $1,000. What is the total annual property tax?
- An Arizona property sold for $350,000. The total commission rate is 6%. The listing broker and buyer's broker split the commission 50/50. How much does each broker receive?
- A buyer obtains a 90% LTV loan on a $380,000 property. What is the down payment?
- A property management company charges 8% of collected rents. If the monthly rent roll is $45,000, what is the monthly management fee?
- A buyer in Arizona purchases a home for $420,000 with a 20% down payment. What is the amount of the buyer's mortgage loan?
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →