Real Estate Math

A Texas duplex has a GRM of 12. If each unit rents for $950/month, what is the estimated value?

A$136,800

B$228,000

C$273,600✓ Correct

D$285,600

Explanation

Annual gross rent = 2 × $950 × 12 = $22,800. Value = GRM × Annual Rent = 12 × $22,800 = $273,600.

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