Real Estate MathIntermediateDelaware Exam
A property has a gross rent multiplier of 120 and rents for $1,800 per month. What is the estimated value?
A$180,000
B$196,800
C$216,000Correct
D$240,000
Why $216,000 Is Correct
Answer C: $216,000
Value = GRM × Monthly Rent = 120 × $1,800 = $216,000. Using the values given ($1,800), apply the appropriate formula..
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
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State-Specific Concepts
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