Real Estate Math
A Tennessee investor is looking at a 6-unit apartment building. Each unit rents at $725/month. Using a GRM of 110, what is the estimated market value?
A$572,550
B$478,500✓ Correct
C$478,650
D$527,250
Explanation
Monthly gross rent = 6 × $725 = $4,350. Value = GRM × Monthly rent = 110 × $4,350 = $478,500. ( Correct answer is $478,500.
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