Real Estate Math
A Michigan investor buys a four-unit building for $480,000. Each unit rents for $900/month. What is the gross rent multiplier (monthly basis)?
A111.1
B133.3✓ Correct
C100.0
D120.5
Explanation
Monthly gross rent = 4 units x $900 = $3,600. GRM = Purchase Price / Monthly Gross Rent = $480,000 / $3,600 = 133.3.
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