Real Estate Math
A Rhode Island investor purchases a duplex for $420,000 and collects $2,800/month per unit. What is the annual gross rent multiplier (GRM)?
A6.25✓ Correct
B7.50
C8.00
D12.50
Explanation
Annual gross rent = 2 units x $2,800 x 12 = $67,200. Annual GRM = $420,000 / $67,200 = 6.25. Using the values given ($420,000, $2,800), apply the appropriate formula.. The correct answer is 6.25.. This is a common calculation on the Rhode Island real estate exam.
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