Residential Real Estate Investing
A real estate agent, who is experienced with multi-family purchases as well as rentals, can help buyers to identify comparable homes or buildings, estimate the potential rent income, and determine a fair purchase price. Once you calculate GRM for your 4-6 comparable properties, the average GRM is used to estimate a price or value for the multi-family house or mixed-use property.
*Note that GRM does not reflect any operating expense, property taxes, or management costs; to include those elements in your analysis, calculate a Capitalization Rate (CAP rate), which is an expression of Return on Investment (ROI) for rental properties.