Real Estate Math
An investor buys a 4-plex in Albuquerque for $480,000 and rents each unit for $900/month. What is the gross rent multiplier (GRM)?
A8.3
B11.1✓ Correct
C13.3
D16.7
Explanation
Annual gross income = 4 units × $900 × 12 = $43,200. GRM = Purchase Price / Annual Gross Income = $480,000 / $43,200 = 11.
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