A California appraiser needs to extract a GRM from a comparable sale. A fourplex in Riverside, California recently sold for $680,000. The four units were renting at $1,250, $1,300, $1,200, and $1,250 per month at the time of sale. What is the monthly Gross Rent Multiplier?
Correct Answer
D) 136.0
Step 1: Total monthly rent = $1,250 + $1,300 + $1,200 + $1,250 = $5,000. Step 2: Monthly GRM = Sale Price / Monthly Rent = $680,000 / $5,000 = 136.0.
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