Real Estate Math
An investor purchases a 4-unit apartment building for $600,000. Annual gross rents total $72,000. What is the gross rent multiplier?
A7
B8.33✓ Correct
C10
D12
Explanation
GRM (annual) = Sales price ÷ Annual gross rent = $600,000 ÷ $72,000 = 8.33. Using the values given ($600,000, $72,000), apply the appropriate formula.. The correct answer is 8.33.. This is a common calculation on the Connecticut real estate exam.
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