Gross Income Multiplier Is Used for Which Property
The most commonly used approaches to determine the current market value of a property are the cost approach income approach sales comparison approach and gross rent multiplier. Gross income Income net of taxes paid. Gross Rent Multiplier A Beginner S Guide Propertymetrics A GRM of six times a gross rental income of 40000 gets you get a fair market estimate of 240000. . Gross rent multiplier GRM is a figure used to evaluate multi-unit and commercial income producing real estate investments. The lower the GRM is the more potential a commercial property may have everything else being equal. The gross income multiplier is obtained by dividing the propertys sale price by its gross annual rental income and is used in valuing commercial real. While it sounds a little tricky it really is quite easy as long as. Maybe you know the GRM for the properties in the area is six and you used a gross rent estimate if the property is vacant ...