Question

Find the annual GRM. A 9-unit building in Cleveland Ohio, with an asking price of $500,000 and gross annual rents of $75,000

A. 5.66
B. 6
C. 6.66
D. 7.66

Answer 1

The annual Gross Rent Multiplier (GRM) for the 9-unit building is calculated to be 6.66 by dividing the property asking price by the gross annual rents. option c

Step-by-step explanation:

To find the annual GRM (Gross Rent Multiplier), you need to use the formula:

GRM = Property Price / Gross Annual Rents

For the given 9-unit building in Cleveland Ohio:

Asking Price: $500,000

Gross Annual Rents: $75,000

Now, plug in the values into the formula:

GRM = $500,000 / $75,000

= 6.66

Therefore, the annual GRM for the building is 6.66, which correlates to option C.