Analyzing the Financials
From Recently Sold Rental Buildings.
Patrick Walchuk takes a recent sale of a Multi Unit Residential Building in the Ottawa area and then breaks down the numbers to see if was a good investment. If you want to see even more, we have an archive at our YouYube Channel for Investors
South Ottawa Tripex that SOLD in April, 2025
This property is located in South Ottawa, with three 2-bedroom units. The property was listed for $799,900 and sold for $755,000.
- Scheduled Rental Income was $57,600
- Effective Rental Income was $55,872
- Operating expenses of $18,613
- Total Operating Expenses, with 10% for maintenance/management $24,200
- Net operating income of $31,672
- Cap Rate was 4.19%
- Operating Expense Ratio was 43.3%
- Sold for 14 times the Gross Income
- Sold for 24 times the Net Income
With a 40% down payment of $302,000, this leaves a mortgage of $453,000. At an interest rate of 5%, amortized over 25 years, the monthly mortgage payment would be $2,635, for an Annual Debt Service of $31,620 (this is the annual mortgage payment).
The final cash flow on this building was $52 and the ROI (return on investment) was 0.02%.
Central Tripex that SOLD in March, 2025
This property is located in Central Ottawa, with two 2-bedroom units and one 1-bedroom unit. The property was listed for $860,000 and sold for $805,000.
- Scheduled Rental Income was $62,007
- Effective Rental Income was $60,147
- Operating expenses of $16,725
- Total Operating Expenses, with 10% for maintenance/management $22,740
- Net operating income of $37,407
- Cap Rate was 4.65%
- Operating Expense Ratio was 37.8%
- Sold for 13 times the Gross Income
- Sold for 22 times the Net Income
With a 34% down payment of $273,700, this leaves a mortgage of $531,300. At an interest rate of 5%, amortized over 25 years, the monthly mortgage payment would be $3,090, for an Annual Debt Service of $37,080 (this is the annual mortgage payment).
The final cash flow on this building was $327 and the ROI (return on investment) was 0.12%.
Central 5 Unit Building Sold in Oct. 2024
This 5-Unit is located in Central Ottawa, with one Bachelor Apartment, one 1-Bedroom Unit, one 2-Bedroom Unit, and two 3-Bedroom Units. The property was listed for $1,200,000, and sold for $1,145,000.
- Scheduled Rental Income was $106,030
- Effective Rental Income was $102,849
- Operating expenses of $20,005
- Total Operating Expenses, with 10% for maintenance/management $30,290
- Net operating income of $72,559
- Cap Rate was 6.34%
- Operating Expense Ratio was 29.5%
- Sold for 11 times the Gross Income
- Sold for 16 times the Net Income
With a 20% down payment of $229,000, this leaves a mortgage of $916,000. At a 4.7% rate, amortized over 25 years, the monthly mortgage payment would be $5,172, for an Annual Debt Service of $62,064 (this is the annual mortgage payment).
The final cash flow on this building was $10,495 and the ROI (return on investment) was 4.58%.
East Ottawa 4 Unit Building Sold in Oct. 2024
This property is located in East Ottawa, with four 2-bedroom units. The property was listed for $1,449,900 and sold for $1,370,000.
- Scheduled Rental Income was $88,800
- Effective Rental Income was $86,136
- Operating expenses of $16,166
- Total Operating Expenses, with 10% for maintenance/management $24,780
- Net operating income of $61,356
- Cap Rate was 4.48%
- Operating Expense Ratio was 28.8%
- Sold for 16 times the Gross Income
- Sold for 22 times the Net Income
With a 34% down payment of $465,800, this leaves a mortgage of $904,200. At an interest rate of 4.7%, amortized over 25 years, the monthly mortgage payment would be $5,106, for an Annual Debt Service of $61,266 (this is the annual mortgage payment).
The final cash flow on this building was $90 and the ROI (return on investment) was 0.02%.
Central Triplex Sold in Sept. 2024
This property is located in Central Ottawa, with one 1-bedroom unit, and two 2-bedroom units. The property was listed for $875,000 and sold for $830,000.
- Scheduled Rental Income was $65,200
- Effective Rental Income was $63,244
- Operating expenses of $19,775
- Total Operating Expenses, with 10% for maintenance/management $26,099
- Net operating income of $37,145
- Cap Rate was 4.48%
- Operating Expense Ratio was 41.3%
- Sold for 13 times the Gross Income
- Sold for 22 times the Net Income
With a 34% down payment of $282,200, this leaves a mortgage of $547,800. At an interest rate of 4.7%, amortized over 25 years, the monthly mortgage payment would be $3,093, for an Annual Debt Service of $37,116 (this is the annual mortgage payment).
The final cash flow on this building was $29 and the ROI (return on investment) was 0.01%.
Central 6 Unit Building Sold in Aug. 2024
This Six to Eight Unit is located in Central Ottawa, with four 1-Bedroom Units, and four 2-Bedroom Units. The property was listed for $1,397,000, and sold for $1,366,200.
- Scheduled Rental Income was $122,392
- Effective Rental Income was $118,720
- Operating expenses of $42,515
- Total Operating Expenses, with 10% for maintenance/management $54,387
- Net operating income of $64,333
- Cap Rate was 4.71%
- Operating Expense Ratio was 45.8%
- Sold for 12 times the Gross Income
- Sold for 21 times the Net Income
With an 31% down payment of $423,522, this leaves a mortgage of $942,678. At a 4.7% rate, amortized over 25 years, the monthly mortgage payment would be $5,323, for an Annual Debt Service of $63,876 (this is the annual mortgage payment).
The final cash flow on this building was $457 and the ROI (return on investment) was 0.11%.
