If a new house rents for $800, what would be its estimated selling price using a Gross Multiplier of 150?

To determine the estimated selling price of the house using the Gross Rent Multiplier (GRM), you multiply the monthly rental income by the Gross Multiplier. In this case, the house rents for $800 per month, and the Gross Multiplier is 150.

The calculation would be as follows:

Estimated Selling Price = Monthly Rent x Gross Multiplier

Estimated Selling Price = $800 x 150

Estimated Selling Price = $120,000

Thus, the estimated selling price of the house is $120,000. This method is commonly used in real estate to quickly derive property values based on their income potential, providing a straightforward approach to valuing rental properties.