Real Estate Math

An Iowa investor purchases a duplex for $180,000 and charges $800/month per unit. What is the gross rent multiplier (GRM)?

A10.5
B11.25✓ Correct
C12.5
D14.0

Explanation

Monthly gross rent = 2 × $800 = $1,600. GRM = $180,000 ÷ $1,600 = 112.

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