Real Estate Math

A 12-unit apartment building has a GRM of 160 and monthly gross rent per unit of $1,400. What is the estimated value?

A$2,688,000✓ Correct
B$2,419,200
C$2,880,000
D$2,016,000

Explanation

Total monthly gross rent = 12 × $1,400 = $16,800. Value = GRM × Monthly Gross Rent = 160 × $16,800 = $2,688,000.

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