Property Valuation
An appraiser using the gross rent multiplier (GRM) approach needs to know:
ANet operating income and capitalization rate
BMonthly gross rent and recent sales prices of comparable rental properties✓ Correct
CReplacement cost and accrued depreciation
DAnnual operating expenses and mortgage balance
Explanation
GRM = Sale Price ÷ Monthly Gross Rent. The appraiser needs the subject's monthly gross rent and the sale prices and rents of comparable rental properties to calculate and apply the GRM.
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