Real Estate Math
A NJ investment property has a gross annual rent of $60,000 and sells for $720,000. What is the Gross Rent Multiplier (GRM)?
A10
B12✓ Correct
C14
D16
Explanation
GRM = Sales Price ÷ Gross Annual Rent = $720,000 ÷ $60,000 = 12. Using the values given ($60,000, $720,000), apply the appropriate formula.. The correct answer is 12.. This is a common calculation on the New Jersey real estate exam.
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