Property Valuation
In Kansas, what is the 'gross rent multiplier' (GRM) method and when is it used?
AA method dividing NOI by the cap rate
BA quick valuation shortcut using the ratio of sale price to gross rental income, used for rough estimates of residential income property value✓ Correct
CA method calculating annual depreciation
DA method used only for commercial properties
Explanation
The GRM divides the sale price by gross annual (or monthly) rent. It is a quick, informal method used to compare residential income properties and estimate value without detailed expense analysis.
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