Using the formula, you can quickly rank potential investment properties according to value. The GIM gives you a quick look at whether a property will remain profitable as conditions change. Let's take a deeper look at how beneficial the gross income multiplier really is.
Once you've determined the gross annual rental income and the property price, you are ready to calculate the GIM. The formula for the gross income multiplier is simple: Property Price / Gross Annual Rental Income = Gross Income Multiplier