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Answer :
Final answer:
The Gross Rent Multiplier (GRM) of a property valued at $3,500,000 with annual income of $175,000 is 20.
Explanation:
The Gross Rent Multiplier (GRM) is a real estate metric that is used to evaluate the relative value of an investment property. It represents the ratio of the price of the property to its gross rental income. The GRM can be calculated by dividing the property value over the annual gross rental income.
In this specific example, the property is valued at $3,500,000 and it generates an annual income of $175,000. Therefore, the GRM would be the property value ($3,500,000) divided by the annual income ($175,000). After calculating, you'll find that the GRM for this property is 20, which means that it would take 20 years of gross income to cover the property value. Hence, the correct answer is c. 20.
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