Real Estate Math
A Wisconsin duplex rents for $850/unit/month. Using a GRM of 130, what is the estimated value?
A$195,500
B$199,000
C$204,750
D$221,000✓ Correct
Explanation
Total monthly rent = 2 × $850 = $1,700. Value = GRM × Monthly Rent = 130 × $1,700 = $221,000. Using the values given ($850), apply the appropriate formula.. The correct answer is $221,000.. This is a common calculation on the Wisconsin real estate exam.
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