Real Estate Math

A Kansas investor buys a duplex for $220,000. Each unit rents for $1,050/month. What is the annual GRM?

A8.7
B10.5✓ Correct
C14.0
D17.5

Explanation

Annual rent = $1,050 × 2 × 12 = $25,200. Annual GRM = $220,000 ÷ $25,200 ≈ 8.

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