Real Estate Math
An Indiana investor purchases a rental property for $180,000 and receives monthly rent of $1,500. What is the annual gross rent multiplier (GRM)?
A8
B10
C12✓ Correct
D14
Explanation
GRM = Sale Price ÷ Monthly Rent = $180,000 ÷ $1,500 = 120. However if the question asks annual GRM: Annual Rent = $18,000; Annual GRM = $180,000 ÷ $18,000 = 10.
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