Real Estate Math
A Nevada duplex generates $2,200/month per unit. With a vacancy rate of 8% and a GRM of 105 (monthly), what is the indicated value?
A$423,360
B$444,444
C$462,000✓ Correct
D$480,480
Explanation
Total monthly gross rent = 2 × $2,200 = $4,400. Effective monthly income = $4,400 × (1 - 0.08) = $4,400 × 0.92 = $4,048. Value = $4,048 × 105 = $425,040. Standard GRM uses gross rent: $4,400 × 105 = $462,000.
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