Real Estate Math
A 4-unit apartment building is listed at $550,000. Monthly rents are $950 per unit. What is the gross rent multiplier (GRM)?
A9.6
B48.2
C12.1✓ Correct
D10.5
Explanation
Annual Gross Rent = 4 × $950 × 12 = $45,600. GRM = Sale Price / Annual Gross Rent = $550,000 / $45,600 = 12.06 ≈ 12.1.
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