Real Estate Math
A Connecticut investor buys a property for $620,000. The property rents for $4,200/month. What is the gross rent multiplier (GRM)?
A12.3✓ Correct
B147.6
C10.46
D10.8
Explanation
Annual rent = $4,200 × 12 = $50,400. GRM = Purchase price ÷ Annual gross rent = $620,000 ÷ $50,400 ≈ 12.3.
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