Real Estate Math

A West Virginia property owner earns $14,400 per year from a rental property. The gross rent multiplier in the area is 8. What is the estimated value using GRM?

A$115,200✓ Correct
B$120,000
C$144,000
D$100,800

Explanation

Value = GRM x Annual Gross Rent = 8 x $14,400 = $115,200. Using the values given ($14,400), apply the appropriate formula..

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