The gross rent multiplier is 100 x
calculation:
Gross rent multiplier is sales price divided by monthly gross rent
($600,000 / $6,000)
= 100
Improperly calculating GRM could lead an investor to purchase a property that turns out to be a poor investment.
For residential rental properties with one to four units, the gross monthly rent multiplier approach is typically employed.
Only the duplex, often known as a double or two-flat, fits this description.
The whole amount of revenue produced before deducting costs, interest, and taxes is referred to as gross income.
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