Real Estate Math

A 20-unit apartment building has a GRM of 130. Each unit rents for $950/month. What is the estimated value?

A$2,470,000✓ Correct
B$2,340,000
C$2,275,000
D$2,600,000

Explanation

Monthly rent for all units: 20 × $950 = $19,000. Value = Monthly rent × GRM = $19,000 × 130 = $2,470,000.

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