Questions and Answers
If the annual income of a property is $24,000 and the GRM is 146, what is the property's estimated value?
What is the Gross Rent Multiplier (GRM) for a property generating $2,000 per month and valued at $218,000?
What is the Gross Rent Multiplier for a home that sold for $360,000 with a monthly rental income of $3,000?
If a property is valued at $340,000 and has a Gross Rent Multiplier of 148, what is the property's monthly income?
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What is the Gross Income Multiplier (GIM) for a tri-plex that generates $700 rent for each of its three units per month and appraised for $413,000?
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If each unit in a fourplex rents for $850 per month and is appraised at $460,000, what is the GRM?
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A property with a Gross Income Multiplier of 12 and a value of $500,000 has what annual income?
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An income-producing property that rents for $1,000 per month and has a GRM of 84, what is its estimated market value?
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Study Notes
Gross Rent Multiplier (GRM) Overview
- GRM is calculated by dividing the property's price by its annual rental income.
- Helps assess value in relation to rental income.
Card 1: Property Valuation Example
- Comparable sales indicate a GRM of 146.
- Annual income of $24,000 equates to a monthly income of $2,000.
- Estimated property value calculated as $2,000 x 146 = $292,000.
Card 2: Calculating Gross Rent Multiplier
- Property generates monthly income of $2,000 and valued at $218,000.
- GRM determined by $218,000 ÷ $24,000 (annual income) = 109.
Card 3: Finding GRM from Sales Price and Rent
- Home sold for $360,000 with a monthly rental income of $3,000.
- GRM calculation: $360,000 ÷ $3,000 = 120.
Card 4: Monthly Income Determination
- Property valued at $340,000 with a GRM of 148.
- Monthly income can be determined by $340,000 ÷ 148 = $2,297.
Card 5: Tri-Plex Income and Valuation
- Tri-plex rents for $700/unit monthly, totaling $2,100 monthly income.
- Annual income calculated as $2,100 x 12 = $25,200.
- GIM calculated by $413,000 ÷ $25,200 = 16.4.
Card 6: Fourplex GRM Calculation
- Fourplex units rent for $850/month, generating $3,400 monthly income.
- Appraised value is $460,000, leading to GRM of $460,000 ÷ $3,400 = 135.3.
Card 7: Annual Income from GIM
- Property has a GIM of 12 and a value of $500,000.
- Annual income calculated by $500,000 ÷ 12 = $41,667.
Card 8: Market Value Estimation
- Income-producing property rents for $1,000/month with a GRM of 84.
- Estimated market value determined as 84 x $1,000 = $84,000.
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Description
Test your knowledge on national valuation concepts with flashcards focusing on Gross Rent Multiplier (GRM) calculations. This quiz covers key principles related to the valuation of income properties. Perfect for students and professionals in real estate or property management.
