Real Estate Math

A property earns monthly rent of $3,200 and sells for $460,800. What is the gross rent multiplier (GRM)?

A120

B130

C140

D144✓ Correct

Explanation

GRM = Sale Price ÷ Monthly Rent = $460,800 ÷ $3,200 = 144. Using the values given ($3,200, $460,800), apply the appropriate formula..

Related New Jersey Real Estate Math Questions

A NJ investor is considering purchasing a 6-unit building with a gross annual rent of $108,000, a vacancy rate of 8%, and operating expenses of $35,000. At an 8% cap rate, what is the property's value?
A NJ property has a monthly gross income of $6,500, vacancy of 8%, and operating expenses equal to 40% of EGI. What is the monthly NOI?
A NJ property has an assessed value of $400,000 with an equalization ratio of 80%. What is the property's estimated market value?
A NJ seller's closing costs include: 5% commission on $480,000, $2,200 attorney fee, $1,920 transfer tax, and $525 recording fees. What are total seller closing costs?
A 6-unit NJ apartment building generates $1,500/month per unit. Annual vacancy is 5%. What is the effective gross income?
A seller's home is listed at $389,000. They receive an offer at 97% of the list price with a 6% commission. What is the seller's net proceeds before other closing costs?
A NJ buyer pays $25 per square foot per year for a 2,800 sq ft commercial space. If the lease includes an annual 3% rent escalation, what is the rent in Year 2?
A New Jersey home sells for $520,000. The total commission is 5%, split 50/50 between listing and selling brokerages. The listing agent receives 60% of their brokerage's share. How much does the listing agent earn?

Practice More New Jersey Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free New Jersey Quiz →