GRM
I am looking into a multi unit apartment building and it has an 7.25 grm. I was just wondering what the grm was and what would be considered good? Also this is a listing by owner, would an owner be qualified to determine a grm? In some of my research I believe the current owner inherited the property as I've been having a hard time finding comparables in that neighborhood
Thanks for any info,
Sue
Look at this - I am still trying to figure it out too.
http://www.thecreativeinvestor.com/modules.php?op=modload&name=Forum&file=viewtopic&topic=12073&forum=7
Try this one too:
http://www.thecreativeinvestor.com/ViewTopic12289-31-10.html
[ Edited by fmmp on Date 10/02/2003 ]
GRM = Gross Rent Multiplier
Gross Rent Multiplier is a rough technique used by investors to assist in determining the financial prospects for an investment. The GRM can be calculated by dividing the purchase price of a property by its total annual gross rental receipts.
The lower the GRM, the better the financial investment of the property.
Whatever you do DONT purchase a property purely on its GRM, look at the expenses etc.
Good Luck,
Kyle