Real Estate Math
A South Dakota property's monthly gross rent is $2,000 and the GRM is 125. What is the estimated property value?
A$200,000
B$225,000
C$250,000✓ Correct
D$275,000
Explanation
Value = Monthly Rent × GRM = $2,000 × 125 = $250,000. Using the values given ($2,000), apply the appropriate formula.. The correct answer is $250,000.. This is a common calculation on the South Dakota real estate exam.
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