If each unit of a four-unit residential property rents for $750, what would be the estimated value of a similar building using the gross rent multiplier approach?

To determine the estimated value of a similar four-unit residential property using the gross rent multiplier (GRM) approach, first, you need to calculate the total monthly rental income for the building. Since each of the four units rents for $750, you multiply the rent of a single unit by the total number of units:

$750 (rent per unit) x 4 (units) = $3,000 total monthly rent.

Next, to find the annual rental income, multiply the monthly total by 12 months:

$3,000 x 12 = $36,000 annual rental income.

To apply the gross rent multiplier approach, you need an appropriate GRM value that reflects market conditions for similar properties. Suppose we were given a GRM of 10 for these calculations. To estimate the value of the property, multiply the annual rental income by the GRM:

$36,000 (annual income) x 10 (GRM) = $360,000.

However, it looks like the GRM provided is not explicitly stated in the question or assumed in the answer choice. This discrepancy may lead to an approximation. If we had a GRM of approximately 10.42, for instance, this would yield:

$36