Real Estate Math

A Louisiana industrial building contains 45,000 sq ft and rents for $4.50 per sq ft per year. With a 6% vacancy rate, what is the annual effective gross income?

A$190,350✓ Correct
B$202,500
C$213,500
D$185,000

Explanation

Gross potential income = 45,000 × $4.50 = $202,500.

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