Real Estate Math
A New Mexico 4-unit residential building sells for $520,000. The annual gross rent is $52,000. What is the GRM?
A8
B9
C10✓ Correct
D11
Explanation
GRM = Sale Price / Annual Gross Income = $520,000 / $52,000 = 10. Using the values given ($520,000, $52,000), apply the appropriate formula.. The correct answer is 10.. This is a common calculation on the New Mexico real estate exam.
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