Real Estate Math

A NH property generates $52,000 in annual gross rent. The GRM for the market is 12.5 (annual). What is the indicated property value?

A$650,000✓ Correct
B$416,000
C$520,000
D$625,000

Explanation

Value = Annual GRM × Annual Gross Rent = 12.5 × $52,000 = $650,000.

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