Real Estate Math
A Michigan property has a gross rent multiplier (GRM) of 125. Annual gross rents are $24,000. What is the estimated value?
A$250,000✓ Correct
B$300,000
C$275,000
D$225,000
Explanation
Annual GRM method: Monthly rent = $24,000 ÷ 12 = $2,000. Value = Monthly Rent × GRM = $2,000 × 125 = $250,000.
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