Real Estate Math
A Wichita apartment building has 20 units. Average rent is $750/month. The property sold with a GIM of 9.5 (annual). What was the sale price?
A$1,425,000
B$1,575,000
C$1,710,000✓ Correct
D$1,800,000
Explanation
Annual rent = 20 × $750 × 12 = $180,000. Sale price = Annual rent × Annual GIM = $180,000 × 9.5 = $1,710,000.
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