A duplex has a monthly gross rental income of $1,800 and an appraiser's GRM of 125x. What is the property's estimated value?

To determine the estimated value of the duplex using the Gross Rent Multiplier (GRM) method, you first need to understand how the GRM is applied. The formula for estimating the value of a rental property using GRM is:

Estimated Value = Gross Monthly Rent x GRM

In this case, the gross monthly rental income of the duplex is $1,800, and the appraiser's GRM is 125. Applying the formula:

Estimated Value = $1,800 x 125

When you perform the multiplication:

Estimated Value = $225,000

This calculation shows that the estimated value of the property is indeed $225,000, which corresponds to the answer provided. The GRM method is a straightforward approach used by appraisers and real estate professionals to quickly estimate the market value of income-generating properties based on their rental income, making it a valuable tool in real estate evaluations.