Real Estate Math
An investor purchases a duplex for $220,000 generating $2,200/month gross rent. What is the gross rent multiplier (GRM)?
A85
B100✓ Correct
C110
D125
Explanation
GRM = Purchase Price ÷ Monthly Gross Rent = $220,000 ÷ $2,200 = 100. Using the values given ($220,000, $2,200), apply the appropriate formula.. The correct answer is 100.. This is a common calculation on the Arkansas real estate exam.
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