Real Estate Math

A Virginia rental property generates $2,400 per month in gross rent. The gross rent multiplier (GRM) for comparable properties is 120. What is the estimated value of the property?

A$200,000
B$240,000
C$28,800✓ Correct
D$312,000

Explanation

Annual gross rent = $2,400 × 12 = $28,800. Value = Annual Gross Rent × GRM = $28,800 × 10.

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