Real Estate Math
An investor purchases a rental property with a GRM (Gross Rent Multiplier) of 9. If the annual gross rent is $24,000, what is the estimated purchase price?
AA. $180,000
BB. $216,000✓ Correct
CC. $240,000
DD. $192,000
Explanation
Purchase Price = GRM × Annual Gross Rent = 9 × $24,000 = $216,000. Using the values given ($24,000,), apply the appropriate formula.. The correct answer is B. $216,000.. This is a common calculation on the Georgia real estate exam.
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