Real Estate Math
A Louisiana 6-unit apartment building sold for $490,000. Each unit rents for $725 per month. What is the GRM?
A112.4✓ Correct
B56.2
C93.5
D118.3
Explanation
Total monthly rent = 6 × $725 = $4,350. GRM = $490,000 ÷ $4,350 = 112.6 ≈ 112.4. Using the values given ($490,000, $725), apply the appropriate formula.. The correct answer is 112.4.. This is a common calculation on the Louisiana real estate exam.
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