Real Estate Math – Do You Know These Simple Formulas?

Real Estate Math

The Real Estate Math You Don’t Need The gross rent multiplier is one formula you don’t need. I bring it up because people are sometimes still using it, and there are better ways to estimate value. A gross rent multiplier is a crude way to put a value on a property. You decide that properties are worth 10 times annual rent or less, for example, and simply multiply the gross annual rent a building collects by ten to get your value. There are obvious problems with this formula. You need…

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