Real Estate Math
A New Mexico investment property has a gross rent multiplier (GRM) of 12 and annual gross rent of $36,000. What is the estimated value?
A$380,000
B$432,000✓ Correct
C$396,000
D$360,000
Explanation
Value = GRM x Annual Gross Rent = 12 x $36,000 = $432,000. Using the values given ($36,000), apply the appropriate formula.. The correct answer is $432,000.. This is a common calculation on the New Mexico real estate exam.
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