Real Estate Math
A Massachusetts investor purchases a rental property for $400,000 and receives monthly rent of $2,800. What is the gross rent multiplier (GRM)?
A11.9
B142.9✓ Correct
C133.3
D119.0
Explanation
Annual rent = $2,800 × 12 = $33,600. GRM = Purchase Price ÷ Annual Rent = $400,000 ÷ $33,600 ≈ 11.
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