What is the formula to calculate a property's value using gross monthly income and GRM?

To calculate a property's value using its gross monthly income and the Gross Rent Multiplier (GRM), the correct approach is to multiply the gross monthly income by the GRM. This relationship is crucial for real estate investors as it offers a quick method to estimate property value based on income generation.

The GRM is a metric used to evaluate the value of investment properties, particularly rental properties. It represents the ratio of the property's price to the gross rental income it generates. Therefore, when you multiply the gross monthly income by the GRM, you derive the property value.

This formula provides an efficient way for real estate professionals and investors to assess potential investments without needing to conduct a detailed analysis of expenses, cash flow, or market conditions.

Using division, addition, or subtraction would not yield a meaningful representation of a property's value in this context, as these operations do not align with the purpose and calculation principles of GRM.