A property has a GRM of 12 and monthly rent of $3,500. What is the estimated value?
Why $504,000 Is Correct
Answer B: $504,000
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related California Questions
- The monthly rent on a property is $2,400. The gross rent multiplier (annual) for comparable properties is 14. What is the estimated property value?Real Estate Math
- An apartment building has 6 units each renting for $1,800/month. The gross rent multiplier (GRM) for comparable buildings is 110. What is the estimated value of the building using the monthly GRM method?Real Estate Math
- A property generates annual gross rent of $96,000. If comparable properties sell at a GRM of 12 (annual), what is the estimated property value?Real Estate Math
- A property generates $4,200/month in rent. Using a GRM of 160, what is the estimated value?Real Estate Math
- A property generates annual rental income of $96,000. An appraiser uses a gross rent multiplier (GRM) of 13 to estimate value. What is the indicated value?Property Valuation
- A property has an annual gross income of $60,000 and a GRM of 10 (annual). What is the estimated value?Property Valuation
Key Terms to Know
A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
Study This Topic
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →