Real Estate Math
A Utah investor buys a duplex for $400,000. Each unit rents for $1,200/month. What is the gross rent multiplier (GRM)?
A13.9✓ Correct
B16.7
C27.8
D11.1
Explanation
Annual gross rent = 2 units × $1,200 × 12 = $28,800. GRM = $400,000 ÷ $28,800 ≈ 13.9. Using the values given ($400,000, $1,200), apply the appropriate formula.. The correct answer is 13.9.. This is a common calculation on the Utah real estate exam.
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