Real Estate Math
A Mississippi duplex sells for $195,000. Each unit rents for $850/month. The gross rent multiplier is:
A9.56
B11.47✓ Correct
C19.12
D22.94
Explanation
Annual gross rent = 2 units × $850 × 12 = $20,400. GRM = Sale Price ÷ Annual Gross Rent = $195,000 ÷ $20,400 = 9.56. The GRM of 9.56 means the property sells for approximately 9.56 times its annual gross rent. Answer index 0 (9.56) is correct.
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