Real Estate Math
A Minnesota investor buys a 4-unit building for $480,000 and receives $1,200/month per unit. What is the GRM?
A33.3
B100✓ Correct
C40
D8.33
Explanation
Monthly gross rent = 4 units x $1,200 = $4,800. GRM = Sale Price / Monthly Gross Rent = $480,000 / $4,800 = 100.
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