Real Estate Math
A Vermont investor purchases a rental property for $350,000. The property generates $28,000 in annual gross rents. What is the gross rent multiplier (GRM)?
A8.0
B10.5
C12.5✓ Correct
D14.0
Explanation
Annual GRM = Purchase price ÷ Annual gross rent = $350,000 ÷ $28,000 = 12.5. Using the values given ($350,000, $28,000), apply the appropriate formula.. The correct answer is 12.5.. This is a common calculation on the Vermont real estate exam.
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