Real Estate Math
A West Virginia investor purchases a small rental property for $120,000 and receives $950 per month in rent. What is the gross rent multiplier (GRM)?
A10.5
B105
C126✓ Correct
D150
Explanation
Using monthly GRM: GRM = Purchase Price ÷ Monthly Rent = $120,000 ÷ $950 = 126.3 ≈ 126.
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