Real Estate Math
A building in New York has 12 apartments, each renting for $2,000/month. The gross rent multiplier (GRM) for similar buildings is 14. What is the estimated value?
A$2,016,000
B$3,360,000
C$3,840,000
D$4,032,000✓ Correct
Explanation
Annual gross rent = 12 × $2,000 × 12 = $288,000. Value = Annual Gross Rent × GRM = $288,000 × 14 = $4,032,000.
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