gross rent multiplier


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gross rent multiplier

See gross income multiplier.
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A monthly gross rent multiplier is an economic unit of comparison, which is applied as the income capitalization approach when appraising two- to four-unit residential properties.
adu] are gross rent multipliers for the primary and accessory units, and [I.
58 can be converted into a contributory value or adjustment by using the gross rent multiplier analysis.
Gross Monthly Rent $ $ Gross Rent Multiplier Price Per Unit $ $ Price Per Room $ $ Price Per Bedroom $ $ Rent Control [] Yes [] No [] Yes [] No Data Source(s) Verification Source(s) VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) Adjustment Sale or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple Site View Design (Style) Quality of Construction Actual Age Condition Gross Building Area Unit Breakdown Total Bedrooms Baths Total Bdrms Baths Unit # 1 Unit # 2 Unit # 3 Figure 3 Suggested Order and Reversed Order of Adjustments Based on Percentages Suggested Order Subject Adj.
TABLE 2 Billboard Structure Purchase and Rent Purchase price $48,000 Annual gross income (divided by) $12,000 Gross rent multiplier 4 Annual Monthly Gross rental income $12,000 $1,000 Gross rent multiplier 4 48 Indicated value $48,000 $48,000 Purchase price $48,000 Effective gross income (divided by) $10,200 Gross rent multiplier 4.
A residential property would be handled in a similar fashion using a Gross Rent Multiplier (GMRM) technique or a sales comparison approach.
For example, a dwelling that rents for $500 per month and sold for $50,000 has a monthly gross rent multiplier of 100.
Constructed in 1927, average rents per month are $1,214 according to Doshi, who noted that the sale price a gross rent multiplier of 8.
The building is the latest property to reach the market in Brooklyn, where GFI recently reported seeing an uptick in the number of properties trading at lower CAP rates and higher gross rent multiplier (GRM) rates.
Gross Rent Multiplier (GRM): A tool reed to assess tbe approximate value of a rental property by comparing its rental income with other like properties.
4 gross rent multiplier (GRM), $94,450 price par unit, $81 par square foot, and a 6.
The price equates to $70,588 per unit, a gross rent multiplier of 7.