Question

Answered 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?

Answer 1

The options are

A.9.6

B.4.8

C.10.4

D.20.83

The gross income multiplier (GIM) is known as the ratio of sale price to the gross annual rental income and helps in determining the value of an investment.

GIM= Sale price/ Annual Rental income

Sale price =$350,000

Annual rent income for the two unit of duplex = 12*2*$1400

GIM = $350,000/(12*2*$1400) ≈ 10.4