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Using the gross rent multiplier method, what is the value of a residential property improved with a four-unit building where each unit rents for $750 per month and the typical multiplier is 157?

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Final answer:

The value of the residential property improved with a four-unit building can be calculated using the gross rent multiplier method. The value is $5,652,000.

Step-by-step explanation:

The gross rent multiplier method is used to estimate the value of a property based on its rental income. The formula to calculate the value using this method is:

Property Value = Gross Rent Multiplier x Annual Rental Income

In this case, the annual rental income can be calculated by multiplying the monthly rent per unit ($750) by the number of units (4) and then by 12 (months). Therefore, the annual rental income is $36,000 ($750 x 4 x 12).

Using the given gross rent multiplier of 157, we can calculate the value of the property:

Property Value = 157 x $36,000 = $5,652,000

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