Ottawa Real Estate Blog

Sept. 7, 2018

Centretown 6 Unit sold August 2018

This Six Unit Income Property sold in August, in Centretown

Have a look at the table below for all of the financial info on this 6-Plex from Centretown or watch the video where Pat will go through all of the numbers and let you know if they are good or bad.

Below is the table where you can see all of the numbers, and at the bottom we give you this buildings Return on Investment as well as the cash flow based on Two different mortgage rates.

Centretown 6 Unit Building, Sold August 2018
Listed Price $1,295,000

Selling Price $1,240,000
Scheduled Rental Income (SRI) $90,220
Effective Rental Income (ERI) $86,611
Total Operating Expenses (TOE) $31,089
Net Operating Income (NOI) $55,522
Capitalization Rate (CAP) 4.5%
Operating Expense Ratio (OER) 36%
Sales Price X Net Income 22%
35% Downpayment $434,000
Mortgage (@ 5.5%) $806,000
Annual Debt Service (mortgage payments) $59,037
Cash Flow -$3,515
Return on Investment (ROI) -0.8%

Looking at the numbers based on a rate of 5.5%, which is common for larger income properties, this buyer would be taking a loss of $3500 per year, which is a -0.8% return on his initial investment of $434,000.

If this buyer could shop around and find a mortgage at 3,5%, which you can get on smaller buildings and some lenders will do this on larger buildings, this would change the whole scenario. The return on investment goes up to 1.7% and the buyer makes $7200 per year.

Check out some of the Multi-Family Listings we currently have for sale.

Aug. 4, 2018

Westboro 4 Unit Sold in July 2018

Fourplex sold in July, it was located in the Westboro Neighbourhood

We have seen a number of multi unit residential buildings sell in 2018 with negative cash flows. This is based on a 35% down-payment.

In the early to mid 2000's an astute investor could purchase a building with a 20% down-payment and realize a positive cash flow. That changed almost overnight in 2008/09 when the equities market took a dive. Investors who previously never touched real estate now flocked to it in droves. That factor combined with historically low interest rates caused the price of multi unit buildings to jump in value as investors snapped them up.

How much would you be willing to pay for a multi unit building to achieve a positive cash flow?...

… 35%? 45%? Or is cash flow secondary in your criteria. This month take a look at the financials for another negative cash flow property.

Below is the table showing you all of the numbers on this sale, and it looks like the buyer is taking a loss and there could be a reason for that, like the buyer actually moved into One of the units as a live-in owner.

 

Westboro 4 Unit Building, Sold July 2018
Listed Price $950,000

Selling Price $929,000
Scheduled Rental Income (SRI) $49,300
Effective Rental Income (ERI) $47,328
Total Operating Expenses (TOE) $20,465
Net Operating Income (NOI) $26,863
Capitalization Rate (CAP) 2.9%
Operating Expense Ratio (OER) 43%
Sales Price X Net Income 34.6%
35% Downpayment $325,150
Mortgage (@ 5.5%) $603,850
Annual Debt Service (mortgage payments) $36,178
Cash Flow -$9,315
Return on Investment (ROI) -2.9%

Have a look at all of the Multi-Family Listings on our site, or get in touch if you want to buy or sell your building.

July 23, 2018

1081 Ambleside Drive # 2009, Ottawa

1 bedroom condominium with great views for sale at 1081 Ambleside Drive, price is $199,900

In recent years this apartment has been updated with windows and hardwood throughout the foyer, living & dining areas & bedroom. Dining room light fixture with ceiling fan. Ceramic floor in the kitchen with clean white cabinetry and large opening to the living room, allows natural light to flood into it from the balcony.

Balcony access via sliding glass door from living room. Perhaps one of the best views in Ottawa. NOTE condo fees ($625/mo) pay for all utilities + cable!! Building has indoor pool, guest suites, workout room, sauna & more. This one bed, one bath apartment faces northwest with spectacular views of the Ottawa River & Gatineau Hills. View the Britannia Yacht Club, Mud Lake in Britannia Conservation area & famous Deschenes Rapids.

Directions: Richmond Rd to New Orchard or McEwen to Ambleside. Lots of visitors parking beside building.

Condo Fee Includes: Building Insurance, Amenities, Cable TV, Caretaker, Heat, Hydro, Management Fee, Recreation Facilities, Water/Sewer

Condo Amenities: Cable TV, Exercise Centre, Guest Suite, Indoor Pool, Party Room, Sauna, Workshop

Site Influences: Adult Oriented, Balcony, Exercise Room, Indoor Pool, Lakeview, Mountainview, River views

Neighbourhood Influences: Public Transit Nearby, Recreation Nearby, Shopping Nearby, Water Nearby

Taxes/Year: $2,185.00/2018

Want to schedule a viewing at 1081 Ambleside, Apartment 2009?

Patrick at 613-788-2590 or Patrick@AgentInOttawa.com

View the surrounding area using this interactive Google Map

Related Page: Check out more condos currently available at 1081 Ambleside

Posted in New Listings, Woodroffe
July 9, 2018

Centretown 7 Unit Sold in June 2018

We found a 7 Unit apartment building that sold in June and below are the financials on it.

There was a mix of bachelor apartments as well as 1, 2 and 3 bedroom apartments. It took 65 days to sell and it sold for $44,000 under the asking price.

This building had One Apartment that was said to suitable as an Owner Occupant Apartment, and maybe that is why this buyer bought the building, to live-in. The Return on Investment here is negative.

Centretown 7 Unit Building, Sold June 2018
Listed Price $1,469,000

Selling Price $1,425,000
Scheduled Rental Income (SRI) $100,152
Effective Rental Income (ERI) $96,146
Total Operating Expenses (TOE) $36,496
Net Operating Income (NOI) $59,650
Capitalization Rate (CAP) 4.2%
Operating Expense Ratio (OER) 38%
Sales Price X Net Income 24
35% Downpayment $498,750
Mortgage (@ 5.5%) $926,250
Annual Debt Service (mortgage payments) $67,845
Cash Flow - $8,195
Return on Investment (ROI) - 1.6%

At first glance in the table above, you can see that this buyer would be having an $8000 loss in the first year if they had a 35% downpayment. This property did have a 4.2% Cap Rate.

Looking to buy, have a look at all our Income Properties for sale

July 6, 2018

58 Sundragon Way, Barrhaven, Ottawa

House is now SOLD

Our newest listing will be at 58 Sundragon Way in the Half Moon Bay neighbourhood in Barrhaven

Priced at $475,000

58 Sundragon Way is a Wonderful family home with 3 bedrooms & 2.5 baths with one being an ensuite. This Marigold Corner model is 1,710 square feet according to Mattamy plans. It feels even larger with an open concept plan and abundance of windows on the main floor.

Watch the video below for Interior Photos

Talk to guests or keep kids in view when making dinner. Well designed with a mudroom, closet and powder room off of the foyer. Upgraded with hardwood through the main floor. Upstairs features a large open family room. Ensuite with two sinks.

Basement has a partially finished recreation room with flooring and drywall, which just needs to have mud & tape + ceiling for added living space. The hard work's been done!!

Note the 2 car garage that many larger area homes do not have, with direct access to the house. This HUGE corner lot is 3,584 square feet according to Geowarehouse. Compare that to the competition!

The large yard is fully fenced and quite private. Did you notice the large front porch for that country estate vibe. Inquire about the many local schools.

DIRECTIONS: South on Greenbank, west on Dundonald. Left at Andre Audet. Left at Soldats Riendeau to Sundragon Way.

Want to see this house, Patrick@AgentInOttawa.com or 613-788-2590

Take a quick tour of Sundragon Way or the immediate neighbourhood using the interactive street map below

June 11, 2018

142 Huntersfield Drive, Ottawa

New Listing in Greenboro/Hunt Club Park, this is a 2 Storey detached house with 3 beds & 4 baths, priced at $399,900

Coming to the Ottawa MLS on Friday 15th June 2018

142 Huntersfield Drive, Greenboro, Ottawa

This new listing will be going live on Friday 15th June, get in touch for an early showing!

  • Directions: Hunt Club to Pike Street then west on Huntersfield.
  • Lot size: 33.46 ' x 104.98

One of the nicest locations in Greenboro backing on to Bruff Park and kilometers of walking paths. Terrific family home with 4 baths, 3 bedrooms, fully finished basement, and oversized garage.

Watch Video Tour of 142 Huntersfield

In 2016 a red cedar fence installed, basement reno'd with additional room and 3 piece bath added. Dishwasher & garage door 2016. Furnace, AC, believed to be 2015, roof 2010. This is a bright home with large windows. The dining room which has a bay window and the kitchen at the back, over look the park. Kitchen with glass doors to a wood deck & stairs down to the back yard and a patio.

Some recent touch up painting makes this home move in ready. Note 4 appliances are negotiable. Basement den currently used as a 4th bedroom.

Use the Interactive Map below to have a look up and down Huntersfield Drive or take a tour of the neighbourhood.

If you want to live in this neighbourhood, have a look at all the homes that are currently available in the Greenboro, Hunt Club and South Keys Neighbourhoods

June 7, 2018

Vanier 5 Unit Sold in May 2018

The financials we are looking at for May is on the sale of a 5 Unit Apartment Building in the Vanier Neighbourhood

This building took 125 days to sell and it sold for $790,000 which is $10,000 below the listed price. It was Fire Retrofit and had 6 parking spaces. It had Apartments with 1 bed and a den as well as 2 bedroom apartments.

Below you can see all of the numbers that calculate whether this buyer makes any money on this building, and at the end of the day, he does make a return on investment here of 2.74%, very acceptable!

Vanier 5 Unit Building, Sold May 2018
Listed Price $799,900

Selling Price $790,000
Scheduled Rental Income (SRI) $64,620
Effective Rental Income (ERI) $62,035
Total Operating Expenses (TOE) $23,672
Net Operating Income (NOI) $38,363
Capitalization Rate (CAP) 4.9%
Operating Expense Ratio (OER) 38%
Sales Price X Net Income 20.6
35% Downpayment $276,500
Mortgage (@ 3.8%) $513,500
Annual Debt Service (mortgage payments) $30,765
Cash Flow $7,598
Return on Investment (ROI) 2.74%

From the table above, you can see that this buyer has a positive cash flow of $7598 per year on this property, with a 35% downpayment and the mortgage rate assumed here was 3.5%.

Are you looking to buy, check out a selection of Income Property for Sale

May 30, 2018

3414 Fontenay Court, Ottawa

New Listing - This is a split-level 4 bedroom house in the South Keys Neighbourhood, priced at $459,900.

3414 Fontenay Court Exterior Front Image

Quick facts and features about the House & Neighbourhood

  • Short walk to the O-Train.
  • Walking distance to Walmart, Loblaws, Metro, Bank St. & Hunt Club, Greenboro library & community centre.
  • Walking path for 4 to 5 km.
  • Split level house with - 4 Bed, 3 bath
  • 2 car garage
  • main floor family room
  • on a pie shape lot
  • wood-burning fireplace

Watch the video below for a tour inside 3414 Fontenay Crt.

Renovations and Updates done at 3414 Fontenay

  • Shingles/roof 2017
  • Chimney repaired and recapped 2017
  • Hardwood floors refinished 2017-2018 (excluding main bdrm, which was done in 2012)
  • Paint throughout house 2017-2018
  • Fireplace mantle 2017
  • Kitchen updated including quartz countertop 2017-2018
  • powder room/2 piece bath updated 2017
  • main bathroom completely renovated 2017
  • ensuite 3-piece bath completely renovated in 2012

Contact Patrick Walchuk, Patrick@AgentInOttawa.com, or phone 613-788-2590

Showings start Friday June 1st 2018, book your viewing Today and get in right away when it goes live.

May 9, 2018

The Glebe Triplex Sold April 2018

This month we are looking at the financial information on the recent sale of a Triplex from the Glebe

This property sold for $70,000 under it's asking price, so there were likely not multiple offers on this One, as we are seeing with a lot of Income Properties right now. It did sell pretty quick, just 22 days on the Market.

This was a Legal Triplex, that had Operating Expenses which were 35% of it's income and a Cap Rate of 4.2%, which can be considered very decent for an upscale neighbourhood like The Glebe.

Glebe Triplex, Sold April 2018
Listed Price $1,350,000

Selling Price $1,280,000
Scheduled Rental Income (SRI) $85,800
Effective Rental Income (ERI) $82,368
Total Operating Expenses (TOE) $28,477
Net Operating Income (NOI) $53,891
Capitalization Rate (CAP) 4.2%
Operating Expense Ratio (OER) 35%
Sales Price X Net Income 24
35% Downpayment $448,000
Mortgage (@ 3.8%) $832,000
Annual Debt Service (mortgage payments) $51,444
Cash Flow $2,447
Return on Investment (ROI) 0.5%

The buyer here will have a positive cash flow of almost $2500 per year, with a 35% downpayment and a Return-On-Investment of 0.5%.

For the purposes of this situation we are assuming that this buyer got a mortgage rate of 3.8%, which might be a tad on the high end.

If you are looking to buy, check out all of the current Multi-Family Homes for sale at our site.

April 26, 2018

Ontario’s New Mandatory Residential Lease Agreement

Ontarios New Standard LeaseThe New Ontario Standard Lease

Starting April 30, 2018, Ontario landlords of most private residential rental units – from individual landlords to property management companies – must use the standard lease template for all new leases.

The standard lease uses language that is easy to understand in order to ensure landlords and renters are clear about their rights and responsibilities. The Ontario government hopes it will:

  • reduce illegal terms in leases and misunderstandings in verbal tenancy agreements; and
  • reduce the need for Landlord and Tenant Board hearings to resolve disputes.

The standard lease will apply to most residential tenancies in Ontario, including:

  • single and semi-detached houses
  • apartment buildings
  • condominiums
  • secondary units (i.e. basement apartments)

A standard lease is not required for tenancies that have special rules or partial exemptions under the RTA, including:

  • care homes (i.e. retirement homes)
  • mobile home parks and land lease communities
  • social and supportive housing exempt from the rent rules under the RTA (i.e. housing subject to operating agreements under certain programs or where the tenant receives publically funded rent-geared-to-income assistance

Frequently asked questions about the New Standard lease

  • When must the new standard lease be used?

  • What can happen if you don’t use it?

  • How should a landlord get ready for it?

  • What are some of the key points in the standard lease?

  • What terms should a landlord add to the standard lease?

Download the full document here for answers to all of the questions above.

This article by John Dickie
Dickie and Lyman
Lawyers LLP.

Want to check out a copy of the new Standard Lease, we added a link to it from our first blog post about this.

You can download a sample of the new lease in our Previous Article here