Real Estate Math
A Charleston, WV duplex rents each unit for $900/month. The owner uses a GRM of 100 to estimate value. The estimated value is:
A$90,000
B$108,000
C$180,000✓ Correct
D$216,000
Explanation
Total monthly rent = 2 × $900 = $1,800. Value = Monthly rent × GRM = $1,800 × 100 = $180,000. Using the values given ($900), apply the appropriate formula.. The correct answer is $180,000.. This is a common calculation on the West Virginia real estate exam.
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