Real Estate Math
A property valued at $520,000 has a gross rent multiplier (GRM) of 14.5. What is the annual gross rent?
A$35,862✓ Correct
B$7,536,000
C$4,800
D$35,000
Explanation
Annual Gross Rent = Value ÷ GRM = $520,000 ÷ 14.5 = $35,862 (rounded). Using the values given ($520,000), apply the appropriate formula.. The correct answer is $35,862.. This is a common calculation on the Illinois real estate exam.
Related Illinois Real Estate Math Questions
- If a property's value increased from $220,000 to $275,000 over 5 years, what was the total percentage increase in value?
- An Illinois commercial building costs $1,200,000. The land is valued at $240,000. Using 40-year straight-line depreciation, what is the annual building depreciation?
- An investor purchases a four-unit building for $480,000. Each unit rents for $1,200/month. The annual operating expense ratio is 42%. What is the annual cap rate?
- A buyer qualifies for a maximum monthly PITI payment of $2,200. Property taxes are $300/month and homeowner's insurance is $100/month. At 7% for 30 years, the monthly principal and interest factor is $6.65 per $1,000 borrowed. What is the maximum loan amount?
- A property sells for $450,000. Illinois state transfer tax is $0.50 per $500 of the purchase price (or fraction thereof). What is the transfer tax owed?
- A property's assessed value is $180,000 and the assessment ratio is 33.33%. The equalized assessed value (EAV) is $60,000. If the tax rate is $8 per $100 of EAV, what are the annual property taxes?
- A property has an effective gross income of $96,000 and total operating expenses of $43,200. What is the operating expense ratio?
- A home's value decreased by 12% in the past year to its current value of $330,000. What was the original value one year ago?
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →