Real Estate Math

An investor purchases a 6-unit apartment building for $480,000. Monthly rent per unit is $700. What is the annual gross rent multiplier (GRM)?

A8.57
B9.52
C10.48
D11.43✓ Correct

Explanation

Annual gross rent = 6 units x $700/month x 12 months = $50,400. GRM = $480,000 / $50,400 = 9.52.52. Correct answer is 9.52 (option B). GRM = Price / Annual Gross Rent.

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