Real Estate Math
A Nebraska property has a listed gross rent multiplier (GRM) of 95 based on monthly rent. If the property sold for $494,000, what is the implied monthly gross rent?
A$5,200✓ Correct
B$4,800
C$5,500
D$5,000
Explanation
Monthly rent = Sale price ÷ GRM = $494,000 ÷ 95 = $5,200. Using the values given ($494,000,), apply the appropriate formula..
People Also Study
Related Nebraska Questions
- A 12-unit Nebraska apartment building has a gross rent multiplier (GRM) of 130 based on monthly rent. All units rent for $850/month. What is the estimated value?Real Estate Math
- A 4-unit Nebraska building sold for $520,000. The cap rate is 8.5% and the NOI is $44,200. What is the difference between the implied value at 8.5% and the actual sale price?Real Estate Math
- A Nebraska rental property has a gross rent multiplier of 125. If the property is worth $250,000, the monthly gross rent is:Real Estate Math
- An appraiser using the gross rent multiplier (GRM) approach needs to know:Property Valuation
- A Nebraska commercial lease has a base rent of $2,000/month plus 5% of monthly gross sales over $25,000. If the tenant's monthly sales are $40,000, what is the total monthly rent?Real Estate Math
- The gross rent multiplier (GRM) for a Nebraska residential rental is 142. The property rents for $1,400/month. The estimated value is:Property Valuation
- A Nebraska farm sold for $3,200 per acre. The farm contains one section. The total sale price was:Property Valuation
- Gross Rent Multiplier (GRM) is calculated as:Property Valuation
Key Terms to Know
Gross Rent Multiplier (GRM)
A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Math Concepts
Study This Topic
Practice More Nebraska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nebraska Quiz →