What is the value of a 20-unit apartment building rented for $750 per unit per month using a Gross Income Multiplier of 9?

To determine the value of the 20-unit apartment building, we first need to calculate the gross annual income generated from the rents. Each unit is rented for $750 per month, and there are 20 units, so we can compute the monthly rent for the entire building as follows:

Monthly Rent for the Entire Building = Rent per Unit × Number of Units

Monthly Rent = $750 × 20 = $15,000

Next, to find the annual income, we multiply the monthly income by 12 (the number of months in a year):

Annual Income = Monthly Rent × 12

Annual Income = $15,000 × 12 = $180,000

Now that we have the annual income, we can apply the Gross Income Multiplier (GIM) to find the property value. The GIM is a valuation tool used to estimate the value of an income-producing property based on its gross income.

Property Value = Annual Income × Gross Income Multiplier

Property Value = $180,000 × 9 = $1,620,000

Thus, the value of the apartment building, using the given Gross Income Multiplier, is calculated to be $1,620,000. This aligns with the choice mentioned, making