Real Estate Math
An investor buys a rental property for $480,000 and collects $3,200 per month in gross rent. What is the Gross Rent Multiplier (GRM)?
A100
B125
C150✓ Correct
D175
Explanation
GRM = Sale Price ÷ Monthly Gross Rent = $480,000 ÷ $3,200 = 150. A GRM of 150 means the purchase price equals 150 months (12.5 years) of gross rental income.
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