Real Estate MathInvestment_calculationsHARD
A 4-unit building has a GRM of 180 based on comparable sales. Each unit rents for $1,250 per month. What is the estimated value of the building using the GRM method?
Correct Answer
B) $900,000
Step 1: Total gross monthly rent = 4 × $1,250 = $5,000. Step 2: Value = GRM × Gross monthly rent = 180 × $5,000 = $900,000.
Answer Options
A
$225,000B
$900,000C
$5,400,000D
$1,080,000Why This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Real Estate Math Question
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Background Knowledge for Real Estate Math
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Real World Application in Real Estate Math
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Related Topics & Key Terms
Key Terms:
investment_calculationsgrmvalue_estimateinvestment_math
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