Real Estate Math
A Connecticut investor's rental property has a gross rent multiplier (GRM) of 12 and an annual gross rent of $42,000. What is the estimated property value?
A$504,000✓ Correct
B$350,000
C$630,000
D$420,000
Explanation
Value = GRM × Annual Gross Rent = 12 × $42,000 = $504,000. Using the values given ($42,000), apply the appropriate formula.. The correct answer is $504,000.. This is a common calculation on the Connecticut real estate exam.
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