Real Estate Math
An investor purchases a Hawaii rental property for $900,000 and earns $72,000 in annual gross rent. What is the gross rent multiplier (GRM)?
AA. 10.5
BB. 12.5✓ Correct
CC. 125
DD. 75
Explanation
GRM = Sales Price / Gross Annual Rent = $900,000 / $72,000 = 12.5. Using the values given ($900,000, $72,000), apply the appropriate formula.. The correct answer is B. 12.5.. This is a common calculation on the Hawaii real estate exam.
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