Real Estate Math

A Vermont property's monthly gross rent is $2,800. Using a GRM of 150, what is the estimated value?

A$390,000
B$420,000✓ Correct
C$450,000
D$460,000

Explanation

Value = Monthly GRM x Monthly Rent = 150 x $2,800 = $420,000. Using the values given ($2,800), apply the appropriate formula.. The correct answer is $420,000.. This is a common calculation on the Vermont real estate exam.

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