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?
A$1,188,000✓ Correct
B$118,800
C$216,000
D$2,376,000
Explanation
Monthly gross rent = 6 × $1,800 = $10,800. Value = Monthly Gross Rent × GRM = $10,800 × 110 = $1,188,000.
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