Real Estate Math

A Colorado investor purchases a duplex for $520,000. Each unit rents for $1,650/month. What is the annual Gross Rent Multiplier (GRM)?

AA. 13.1

BB. 157.6

CC. 26.3✓ Correct

DD. 315.2

Explanation

Annual GRM = Purchase Price ÷ Annual Gross Rent. Annual Gross Rent = 2 units × $1,650 × 12 = $39,600.

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