Real Estate Math
A Massachusetts rental property has 6 units renting at $2,000/month each. The GRM for similar properties is 130 (monthly). What is the property's indicated value?
A$1,560,000✓ Correct
B$1,300,000
C$2,000,000
D$780,000
Explanation
Monthly gross rent = 6 × $2,000 = $12,000. Value = Monthly Rent × Monthly GRM = $12,000 × 130 = $1,560,000.
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