A salesperson predicts the potential selling price of a fully rented 6-plex. What multiplier should they use?

The correct answer is the gross income multiplier (GIM) because it is commonly used to evaluate the potential selling price of income-producing properties like a fully rented 6-plex. The GIM calculation is based on the gross annual income generated by the property, making it particularly suitable for multi-family dwellings where rental income is a significant factor in determining value.

The GIM is calculated by dividing the property's sale price by its annual gross income, which provides a ratio that can help predict the property's future value based on expected income. This aligns well with the context of the question, which focuses on predicting a selling price derived from the property's income-generating potential.

Other options, such as the net rent multiplier (NRM), typically use net operating income instead of gross income and would provide a different perspective. The gross rent multiplier (GRM) focuses on monthly rental income rather than annual income, which can limit its utility in this context. Return on investment (ROI) generally assesses profitability and investment effectiveness rather than providing a direct multiplier for estimating property values based on rental income. Thus, the GIM is the most appropriate choice for determining the potential selling price of a fully rented 6-plex.