Real Estate Math

An investor pays $550,000 for a property generating $6,000/month in gross rent. What is the gross rent multiplier (using monthly rent)?

A91.7✓ Correct
B95.3
C100
D112.5

Explanation

GRM = Purchase Price ÷ Monthly Rent = $550,000 ÷ $6,000 = 91.67.

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