Real Estate Math
An investor buys a rental property for $420,000 and collects $3,200/month in rent. What is the annual gross rent multiplier (GRM)?
A109✓ Correct
B131
C87
D120
Explanation
GRM = Sale price ÷ Monthly rent = $420,000 ÷ $3,200 = 131.25 monthly. For annual: Annual rent = $3,200 × 12 = $38,400. Annual GRM = $420,000 ÷ $38,400 ≈ 10.9. The question asks monthly GRM: $420,000 ÷ $3,200 = 131.25 ≈ 131.
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