Real Estate Math
An investment property produces a monthly gross income of $3,800. Using a GRM of 110, what is the estimated value?
A$418,000✓ Correct
B$456,000
C$380,000
D$501,600
Explanation
Annual gross income = $3,800 × 12 = $45,600. Value = GRM × Annual Gross Income = 110 × $45,600 = $5,016,000..
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