Real Estate Math
A Maryland investor buys a 6-unit apartment building for $720,000. Monthly rent per unit is $1,000. What is the annual gross rent multiplier (GRM)?
A9.0
B10.0
C12.0✓ Correct
D15.0
Explanation
Annual gross rent = 6 × $1,000 × 12 = $72,000. Annual GRM = $720,000 ÷ $72,000 = 10. But the question asks for annual GRM. GRM = $720,000 ÷ $72,000 = 10.0.
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