Real Estate Math
A Memphis rental property has monthly rent of $1,200. The appraiser uses a monthly GRM of 130. What is the estimated property value?
A$156,000✓ Correct
B$132,000
C$120,000
D$172,000
Explanation
Value = Monthly rent × Monthly GRM = $1,200 × 130 = $156,000. Using the values given ($1,200), apply the appropriate formula.. The correct answer is $156,000.. This is a common calculation on the Tennessee real estate exam.
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