Real Estate Math
A Myrtle Beach rental property generates $2,400/month in gross rent. The gross rent multiplier (GRM) is 120. What is the estimated property value?
A$240,000
B$288,000✓ Correct
C$300,000
D$340,000
Explanation
Annual gross rent = $2,400 × 12 = $28,800. Value = Annual Gross Rent × GRM = $28,800 × 120 / 12... Actually: GRM typically uses monthly rent. Value = Monthly Rent × GRM = $2,400 × 120 = $288,000.
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