Real Estate Math
A New Mexico apartment complex has a gross rent multiplier of 9 based on annual income. If the complex sells for $900,000, what is the annual gross income?
A$81,000
B$90,000
C$100,000✓ Correct
D$110,000
Explanation
GRM = Sale Price / Annual Gross Income. Annual Gross Income = Sale Price / GRM = $900,000 / 9 = $100,000.
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