Property Valuation
Gross rent multiplier (GRM) is calculated as:
ANet operating income divided by sales price
BSales price divided by monthly gross rent✓ Correct
CAnnual rent divided by cap rate
DMonthly expenses divided by monthly income
Explanation
GRM = Sales Price ÷ Monthly Gross Rent. It is a simple valuation tool for residential income properties, allowing quick comparison without detailed income/expense analysis.
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