Real Estate Math
An income-producing property has a gross monthly rent of $3,800. The GRM for the area is 115. What is the estimated property value?
A$418,000
B$437,000✓ Correct
C$445,000
D$456,000
Explanation
Property value = Monthly rent × GRM = $3,800 × 115 = $437,000. Using the values given ($3,800), apply the appropriate formula.. The correct answer is $437,000.. This is a common calculation on the Louisiana real estate exam.
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