Property Valuation
An appraiser is valuing a 10-unit apartment building in Providence. Using the gross rent multiplier (GRM) method with an annual GRM of 12 and annual gross rent of $180,000, what is the indicated value?
A$1,500,000
B$1,800,000
C$2,160,000✓ Correct
D$2,400,000
Explanation
Using GRM method: Value = Annual GRM x Annual Gross Rent = 12 x $180,000 = $2,160,000. Using the values given ($180,000,), apply the appropriate formula.. The correct answer is $2,160,000.. This is a common calculation on the Rhode Island real estate exam.
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