Real Estate Math
A Pennsylvania property has a gross rent multiplier (GRM) of 120. Monthly gross rent is $2,500. What is the estimated property value?
A$300,000✓ Correct
B$30,000
C$2,500,000
D$250,000
Explanation
Property Value = GRM times Monthly Gross Rent = 120 times $2,500 = $300,000. The gross rent multiplier is a quick valuation tool that divides a property's sale price by its monthly (or annual) gross rent.
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