Property Valuation
The gross rent multiplier (GRM) is calculated by dividing the:
ANOI by the monthly rent
BSale price by the annual or monthly gross rent✓ Correct
CMonthly rent by the operating expenses
DProperty value by the cap rate
Explanation
GRM = Sale Price ÷ Gross Monthly (or Annual) Rent. GRM is a quick, rough indicator of value for small income properties.
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