Real Estate Math

A Hawaii 4-unit building sells for $1,200,000. Each unit rents for $2,500/month. What is the GRM based on monthly rents?

AA. 100✓ Correct
BB. 120
CC. 480
DD. 40

Explanation

Total monthly rent = 4 × $2,500 = $10,000. GRM = $1,200,000 / $10,000 = 120.

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