Illinois Real Estate Practice Exam

To determine the value of the property using the Gross Rent Multiplier (GRM), you first need to calculate the annual gross rent. Since the monthly rents total $500, the annual gross rent will be $500 multiplied by 12 months, which equals $6,000.

Once you have the annual gross rent, you can calculate the value of the property by multiplying the total annual rent by the GRM. In this case, you multiply the $6,000 annual rent by the GRM of 120:

\[

Value = Annual Rent \times GRM

\]

\[

Value = 6,000 \times 120 = 720,000

\]

Since the value calculated does not match the options provided, it seems that understanding of the GRM or monthly income could be in question. However, if there was an intended consistency in the provided data (like identifying multiple properties with different characteristics), or errors in the choices listed, the emphasis should be on understanding the GRM as a key factor in property valuation.

The correct answer based on the information indicated would lead to realization that the provided choices may need reevaluation or that additional context about the monthly income across the three flats might be beneficial for determining how the rents aggregate