Real Estate Math

A NC investor buys a rental property for $240,000 and receives $1,600/month rent. The annual gross rent multiplier (GRM) is:

A12.5✓ Correct
B13.5
C14.0
D15.0

Explanation

Annual GRM = Purchase price / Annual gross rent = $240,000 / ($1,600 x 12) = $240,000 / $19,200 = 12.5.

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