GRM (gross rent multiplier)

GRM (gross rent multiplier) — price ÷ annual gross rent: how many years of gross rent repay the purchase price. Metro Manila condos often run 17–24 (i.e., 4–6% gross yields); provincial apartments 10–14. Its job is speed, not truth: rank ten listings by GRM in ten minutes, then fully underwrite only the best — the two-speed habit that processes a hundred listings without a hundred spreadsheets. Never buy on GRM alone; it ignores every expense.

First used in: 3.4 · Underwriting: the Gallinelli math