Real Estate Math
A Morgantown investment property has a GRM of 10 and generates $24,000 in annual gross rent. What is the estimated property value?
A$200,000
B$240,000✓ Correct
C$260,000
D$220,000
Explanation
Value = GRM x Annual Gross Rent = 10 x $24,000 = $240,000. Using the values given ($24,000), apply the appropriate formula.. The correct answer is $240,000.. This is a common calculation on the West Virginia real estate exam.
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