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
|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|
|Mortgage (@ 3.25%)||$338,975|
|Annual Debt Service (mortgage payments)||$20,309|
|Return on Investment (ROI)||-0.14%|