Financials on a Triplex that sold in October 2017 in Vanier

Posted by George Bradie on Wednesday, December 6th, 2017 at 4:07pm.

This month we are crunching the numbers on a Triplex Property that sold in the Vanier Neighbourhood

This is the 2nd month in a row where the property we chose to look at gave the buyer a loss every year, with a 35% down-payment. Granted, it was only a $258 loss. But, some Investors are OK with that, as long as their building appreciates and the tenants keep paying the mortgage down for them.

The Triplex this month had One 1 Bedroom Apartment and Two 3 Bedroom Apartments.

The Operating Expenses look to be a bit on the high side here, at 41% of the Net Income, that means that over 40% of the income goes towards expenses. The Sales Price Times the NET Income also seems to be a tad higher than we expect to see.

This property was on the market for 113 days before it sold.

Vanier Triplex Building, Sold Oct. 2017
Listed Price $535,000

Selling Price $521,500
Scheduled Rental Income (SRI) $35,400
Effective Rental Income (ERI) $33,984
Total Operating Expenses (TOE) $13,933
Net Operating Income (NOI) $20,051
Capitalization Rate (CAP) 3.8%
Operating Expense Ratio (OER) 41%
Sales Price X Net Income 26
35% Downpayment $182,525
Mortgage (@ 3.25%) $338,975
Annual Debt Service (mortgage payments) $20,309
Cash Flow -$258
Return on Investment (ROI) -0.14%

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