Question

A duplex generates $1,400 rent for each of its two units per month. The property has been recently appraised for $350,000. What is this property's GIM? 4.8, 9.6, 10.4, or 20.83??

Answer 1

10.4

Explanation:

To get the property's gross income multiplier (GIM), you divide its appraised value by its gross annual rental income.

Rental income = 2 × $1400/1 month × (12 months/1 yr)

= $33 600/yr

GIM = $350 000/$33 600 = 10.4

The property's GIM is 10.4.