When I first began real estate investing, I heard that the gross rent multiplier (GRM) is useful for evaluating rental property value. The GRM is simply the property price divided by the annual gross rent. For instance, if a 30-unit multifamily property was priced at $1.5 million and the...
The three most effective ways to calculate the value, or sale price, of an apartment building are the gross rent multiplier, or GRM; the capitalization, or cap, rate; and comparative sales, or comps. Both the GRM and cap rate methods are income-based. The GRM method is quick but not v...