How do you determine the GRM to apply to a house?

How do you determine the GRM to apply to a house?

Residential Real Estate Agent · Dayton, OH · Member since 2008 · 70 posts · 1 vote

How do you go about finding out or determining the proper Gross Rent Multiplier to apply to a house that you are thinking about purchasing?

Thanks!!

Kevin

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  • Dayton, OH · Member since 2008 · 517 posts · 17 votes
    20y

    The best way to get this is to talk to some other local landlords. Go to a Real Estate Investors' meeting and someone will be able to get you that information.

  • Real Estate Investor · Delaware · Member since 2008 · 158 posts · 10 votes
    20y

    Have you tried the property analysis tool they have here? You just type in the numbers on the property and it will determine the GRM and more. The link is http://www.biggerpockets.com/recritic.html

    Good luck

  • Residential Real Estate Agent · Dayton, OH · Member since 2008 · 70 posts · 1 vote
    20y

    Thanks guys.

    Sam, that link will come in handy when I have a specific property that I am making an offer on. Right now I was more interested in having an idea what the typical GRM would be for a specific area so that I can eliminate some possibilites when I see adds that include price and rental income. But then I suppose the proper GRM would have a lot to do with the condition of the specific property, so maybe it would not be so easy to eliminate possibilites in this way.

    Juzamjedi, I did infact go to my first Real Estate Investors meeting a couple weeks ago and plan to join up and continue to attend and find out more about these kinds of things. :D

    Kevin

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