Real Estate Math

A property generates monthly gross rent of $2,400. Using a GRM of 110, what is the estimated property value?

A$264,000✓ Correct
B$288,000
C$316,800
D$240,000

Explanation

Annual gross rent = $2,400 × 12 = $28,800. Value = Annual Gross Rent × GRM = $28,800 × 110 = $3,168,000.

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