Real Estate Math
An investor purchases a 6-unit apartment building in Fayetteville for $540,000. Monthly rent per unit is $750. What is the Gross Rent Multiplier (GRM)?
A95✓ Correct
B100
C10
D8.3
Explanation
Annual gross rent = 6 units × $750/month × 12 months = $54,000. GRM = Purchase Price / Annual Gross Rent = $540,000 / $54,000 = 10.
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