Property Valuation
The gross rent multiplier (GRM) for a small residential rental property in Colorado is calculated as:
ANOI divided by the cap rate
BSale price divided by the monthly gross rent✓ Correct
CAnnual gross income divided by the sale price
DMonthly payment divided by gross income
Explanation
GRM = Sale Price / Monthly Gross Rent. For example, if a property sells for $300,000 and generates $2,000/month gross rent, the GRM = $300,000 / $2,000 = 150.
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