Real Estate Math
A property in Illinois has a GIM (gross income multiplier) of 8.5 and annual gross income of $72,000. What is the estimated value?
A$612,000✓ Correct
B$510,000
C$621,000
D$600,000
Explanation
Value = Annual Gross Income × GIM = $72,000 × 8.5 = $612,000. The Gross Income Multiplier (GIM) uses total gross income (before expenses) rather than net income. It is a quick, rough valuation tool that should be used with other valuation methods. The GIM is less precise than the capitalization rate approach because it doesn't account for varying expense ratios.
Related Illinois Real Estate Math Questions
- A property generates $3,200 per month in gross rental income. Annual operating expenses total $14,400. What is the annual net operating income (NOI)?
- A duplex generates annual gross income of $42,000. Operating expenses are $16,800. The property is valued using a direct cap rate of 7%. What is the estimated value?
- An Illinois property was purchased for $185,000. Five years later, property values have increased 25% in the area. What is the estimated current market value?
- An Illinois property's NOI is $54,000 and the cap rate in the market is 7.2%. What is the indicated value?
- A duplex in Rockford, IL generates $1,200/month per unit in rent. Annual operating expenses are $8,400. What is the annual net operating income (NOI)?
- An Illinois homeowner's annual property taxes are $8,500. The property is assessed at $85,000 and the equalization factor is 3.0. What is the tax rate?
- An Illinois buyer is purchasing a home for $285,000 with a 10% down payment. The lender charges 1 origination point and 1 discount point. What is the total points cost?
- What is the annual GRM for a property priced at $390,000 that rents for $2,750 per month?
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →