Real Estate Math
A West Virginia investor purchases a rental property for $120,000. The property rents for $1,100 per month. The annual Gross Rent Multiplier (GRM) is approximately:
A9.09✓ Correct
B10.91
C13.20
D7.27
Explanation
Annual GRM = Sale Price / Annual Gross Rent = $120,000 / ($1,100 x 12) = $120,000 / $13,200 = approximately 9.09.
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