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An apartment building that sold for $450,000 had monthly gross rent receipts of $3,000. What is its monthly gross rent multiplier?

1.150
2..08
3..01
4.12.5

1 Answer

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Final answer:

The monthly gross rent multiplier is calculated by dividing the sale price of the property by the monthly gross rental income. For the apartment building that sold for $450,000 with monthly gross rent receipts of $3,000, the monthly gross rent multiplier is 150.

Step-by-step explanation:

To calculate the monthly gross rent multiplier for an apartment building, we divide the sales price of the property by the monthly gross rental income. In the scenario given, the apartment building sold for $450,000, and the monthly gross rent receipts are $3,000.

The formula to calculate the monthly gross rent multiplier is:

Monthly Gross Rent Multiplier = Sale Price / Monthly Gross Rent

So, for the given problem, we calculate it as follows:

Monthly Gross Rent Multiplier = $450,000 / $3,000 = 150

Therefore, the monthly gross rent multiplier is 150.

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