What is the GRM for a residential duplex with a selling price of $234,000 if the monthly rent for each unit is $925? A. l.054 B. 10.54 C. 126.5 D. 252.9 Answer is C. 126.5

Answer :

Answer:

126.5

Step-by-step explanation:

Given :The monthly rent for each unit is $925

To Find : What is the GRM for a residential duplex with a selling price of $234,000 if the monthly rent for each unit is $925?

Solution:

Annual Gross Rents = $925

Property Value = $234,000

For answer to be 126.5 , $925 must be semiannual rent

So, annual rent = 925*2

Formula : Property Value = Annual Gross Rents X Gross Rent Multiplier (GRM)

Substitute the values :

[tex]234000=925 \times \text{Gross Rent Multiplier}[/tex]

[tex]\frac{234000}{925 \times 2}= \text{Gross Rent Multiplier}[/tex]

[tex] 126.5 = \text{Gross Rent Multiplier}[/tex]

Hence The GRM for a residential duplex with a selling price of $234,000 if the monthly rent for each unit is $925 is  126.5

So, Option D is true .

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