Real Estate Math
A South Dakota investor buys a rental duplex for $180,000. The annual gross rental income is $24,000. What is the gross rent multiplier (GRM)?
A5.5
B6.5
C7.5✓ Correct
D8.5
Explanation
GRM = Purchase Price ÷ Annual Gross Rent = $180,000 ÷ $24,000 = 7.5.
Related South Dakota Real Estate Math Questions
- A property sells for $285,000. The total commission rate is 6%. The listing agent and selling agent split the commission equally. How much does each agent's brokerage receive?
- A South Dakota property is assessed at $210,000. The assessment ratio is 80% of market value. What is the market value?
- A South Dakota investor wants an 8.5% return on a $650,000 investment in a commercial property. What minimum annual NOI is required?
- A South Dakota home is assessed at $195,000. The mill rate is 20 mills. What are the annual property taxes?
- A South Dakota property taxes of $3,600/year have been paid in full. Closing is June 1. What is the buyer's portion of the taxes (assuming taxes paid in advance)?
- A property in Sioux Falls is assessed at $180,000. The tax rate is $15 per $1,000 of assessed value. What are the annual property taxes?
- A South Dakota property costs $180,000 to replace if destroyed. Land value is $30,000. Depreciation on the building is 20%. What is the value using the cost approach?
- A South Dakota investor buys a rental house for $175,000 and makes a $35,000 down payment. Monthly rent is $1,400 and monthly expenses are $450. What is the annual cash-on-cash return?
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →