Vanier 6 Unit Building Sold in Dec. 2017

Posted by George Bradie on Friday, January 5th, 2018 at 4:08pm.

Financial Numbers on a 6-Unit Income Property that sold in December 2017 in Vanier

This month Pat took an Income Property with 6 Apartments that was listed at $649,900 and sold for $605,000 in 160 Days, so it was on the market for a while before it actually sold.

Below are all of the financials on this property, where you can see that it had a CAP Rate of 5.2, which is pretty high, but also look at the amount it sold for and the Operating Expense Ratios.

At the end of the day, the buyer of this Building will put $8,809 in their pocket each month for a return of 4% on their investment, which was their original 35% Down-Payment of $211,750.

Vanier 6-Unit Building, Sold Dec. 2017
Listed Price $649,900

Selling Price $605,000
Scheduled Rental Income (SRI) $52,700
Effective Rental Income (ERI) $50,592
Total Operating Expenses (TOE) $18,959
Net Operating Income (NOI) $31,633
Capitalization Rate (CAP) 5.2%
Operating Expense Ratio (OER) 37%
Sales Price X Gross Income 12
Sales Price X Net Income 19
35% Downpayment $211,750
Mortgage (@ 3.25%) $393,250
Annual Debt Service (mortgage payments) $22,824
Cash Flow $8,809
Return on Investment (ROI) 4%

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