Real Estate Math
A Pennsylvania investment property with a $300,000 purchase price generates $36,000 annual gross rent. What is the gross rent multiplier (GRM)?
A8.3✓ Correct
B100
C8
D12
Explanation
GRM = Sale Price ÷ Annual Gross Rent = $300,000 ÷ $36,000 = 8.33.
Related Pennsylvania Real Estate Math Questions
- A 3-unit Pennsylvania property generates $3,600/month total rent (all units). Operating expenses are 35% of gross income. What is the monthly NOI?
- A Pennsylvania buyer finances $270,000 at 7% for 30 years. Using the mortgage factor of $6.65 per $1,000, what is the approximate monthly payment?
- A Lancaster County, PA, farm of 85 acres sells for $1.275 million. What is the price per acre?
- A Pennsylvania investment property purchased for $350,000 produces annual cash flow of $21,000 after all expenses and debt service. What is the cash-on-cash return if the investor put 25% down?
- A Pennsylvania investor purchases a commercial property at a 6.5% cap rate for $1.2 million. What is the annual NOI?
- A Pennsylvania property sells for $425,000. The state Realty Transfer Tax is 1% and the local tax is 1%, split equally between buyer and seller. How much does the buyer pay in transfer taxes?
- A Pennsylvania residential property has an appraised value of $310,000. The buyer makes a 20% down payment. What is the LTV ratio and the mortgage amount?
- A Pennsylvania investor purchases a rental property for $350,000, collects $2,800/month rent, and has $14,400 in annual operating expenses. What is the cap rate?
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →