Property Flip or Hold – How to Calculate Gross Rent Multiplier (At Purchase)

How to Calculate, Property Flip or Hold, Real Estate Investment

Gross Rent Multiplier (At Purchase) – Measures the purchase price to its annual gross income. The GRM is the number of years it takes to pay for the purchase price via gross income.

  Purchase Price
÷ Gross Income (1st Year)
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= Gross Rent Multiplier (At Purchase)
 $1,800,000
÷  $268,800
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= 6.7

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