Real Estate Math
A property has a gross monthly rent of $2,400. Using a gross rent multiplier (GRM) of 150, what is the estimated property value?
A$300,000
B$360,000✓ Correct
C$400,000
D$420,000
Explanation
Value = GRM x Monthly Rent = 150 x $2,400 = $360,000. Using the values given ($2,400), apply the appropriate formula.. The correct answer is $360,000.. This is a common calculation on the New Mexico real estate exam.
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