Real Estate Math
An investor purchases a 4-unit building for $480,000. Each unit rents for $1,100/month. What is the monthly GRM?
A91
B109✓ Correct
C100
D120
Explanation
Monthly gross rent: 4 × $1,100 = $4,400. Monthly GRM: $480,000 ÷ $4,400 = 109.
People Also Study
Related Rhode Island Questions
- An investor buys a 6-unit apartment building in Providence for $720,000. Each unit rents for $1,200/month. What is the annual gross rent multiplier (GRM)?Real Estate Math
- When a Rhode Island appraiser estimates the value of a duplex using the gross rent multiplier method, they divide the sale price of comparables by their annual gross rents to derive the GRM. The subject property has annual gross rents of $30,000 and the market GRM is 12. What is the indicated value?Property Valuation
- A Rhode Island rental property has monthly gross rents of $4,500. If the annual vacancy rate is 8%, what is the effective gross income?Real Estate Math
- A Rhode Island property has gross rents of $2,400/month. If the GRM is 110, what is the indicated value?Real Estate Math
- A Rhode Island investor receives monthly net rent of $2,000 on a property purchased for $300,000. What is the annual cash-on-cash return if the investor paid all cash?Real Estate Math
- A Rhode Island borrower's PITI payment is $2,400/month. The lender requires that PITI not exceed 28% of gross monthly income. What minimum monthly income is required?Finance
- What is 'gross rent multiplier' (GRM) as used in Rhode Island investment property valuation?Property Valuation
- A Rhode Island condominium unit owner is delinquent on their monthly HOA assessments. The condominium association may:Property Ownership
Key Terms to Know
Gross Rent Multiplier (GRM)
A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Math Concepts
Study This Topic
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →