Real Estate Math
An investor buys a rental property for $180,000 and rents it for $1,600/month. What is the annual gross rent multiplier?
A9.375✓ Correct
B112.5
C10.5
D125
Explanation
Annual GRM = Purchase Price ÷ Annual Gross Rent = $180,000 ÷ ($1,600 × 12) = $180,000 ÷ $19,200 = 9.375.
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