Real Estate Math
An investor purchases a 4-unit property in Scranton for $280,000. Each unit rents for $850/month. What is the gross rent multiplier (GRM) using monthly rent?
A82.4✓ Correct
B82
C83
D76.4
Explanation
Monthly gross rent = $850 × 4 = $3,400. GRM = $280,000 ÷ $3,400 = 82.35 ≈ 82.4. GRM allows investors to quickly compare investment properties — lower GRM generally means more affordable relative to income, though expense ratios must also be considered.
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