Real Estate Math

A Wyoming investment property generates monthly rent of $2,400 and sells for $288,000. What is the annual GRM?

A10✓ Correct
B100
C120
D140

Explanation

Annual gross rent = $2,400 x 12 = $28,800. GRM = $288,000 / $28,800 = 10. A GRM of 10 means the sale price equals 10 times the annual gross rent.

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