Real Estate Math
An Ohio investor buys a 6-unit apartment for $480,000. Each unit rents for $650/month. What is the annual gross rent multiplier (GRM)?
A10.3
B10.9
C12.3✓ Correct
D13.2
Explanation
Annual gross rent = 6 × $650 × 12 = $46,800. GRM = $480,000 / $46,800 = 10.26 ≈ 10.3. $480,000 / $46,800 = 10.26. The3). But if calculating using monthly rent: Monthly GRM = $480,000 / (6×$650) = $480,000 / $3,900 = 123. For annual GRM = $480,000/$46,800 = 10.26 ≈ 10.3 = answer A.
Related Ohio Real Estate Math Questions
- An Ohio seller owes $195,000 on their mortgage. The property sells for $285,000. After a 5.5% commission, what are the seller's net proceeds before other closing costs?
- A property generates annual gross rents of $36,000 and has a 5% vacancy rate. What is the effective gross income?
- If a home in Columbus sells for $375,000 and the state conveyance fee is $1/$1,000 plus a county add-on of $2/$1,000, what is the total conveyance fee?
- A building is 50 years old with a total economic life of 75 years. Using straight-line depreciation, what percentage of value has been depreciated?
- An office building has 25,000 rentable sq ft at $18/sq ft NNN with a 10% vacancy rate. Annual operating expenses for the landlord are $35,000. What is the NOI?
- A property has monthly rents of $3,800. At a 7.5% annual cap rate, what is the estimated property value?
- An Ohio property is appraised at $280,000. The county auditor assesses it at 35% for tax purposes. The millage rate is 60 mills. What is the annual tax? (1 mill = $0.001 per $1 of value)
- A building was purchased for $500,000. The land value is $100,000. Using straight-line depreciation over 39 years (commercial), what is the annual depreciation deduction for the building?
Practice More Ohio Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Ohio Quiz →