Real Estate MathIntermediateDelaware Exam
A property's annual gross rent is $24,000 and it sells for $240,000. What is the gross rent multiplier (GRM)?
A8
B10Correct
C12
D15
Why 10 Is Correct
Answer B: 10
GRM = Sale Price ÷ Annual Gross Rent = $240,000 ÷ $24,000 = 10. Using the values given ($24,000, $240,000), 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.
Key Real Estate Math Terms in This Question
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