Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago,

User Stats

317
Posts
72
Votes
Paul Winka
  • Rental Property Investor
  • St Louis, MO
72
Votes |
317
Posts

Help! I don't understand GRM and how its calculated.

Paul Winka
  • Rental Property Investor
  • St Louis, MO
Posted

I've been using the BP calculators. 

After I get the output, I am trying to reverse calculate these numbers so I can understand where they came from. I have been able to do that for all the calculations below EXCEPT the gross rent multiplier. How did the calculator come up with 7.38? That number is not even in the ball park. Rents of $1750 each month would mean a home value of $12,915? Thanks for the help. 

Loading replies...