This month we are taking a look at a larger building, this 12 unit sold in April 2019, below are the financials.

This building was a mix of bachelor and 2 bedroom apartments with one unit being commercial with a separate entrance. There were 11 parking spaces.

West Ottawa 12 Units, Sold April 2019
Listed Price $2,100,000

Selling Price $1,995,000
Scheduled Rental Income (SRI) $167,100
Effective Rental Income (ERI) $162,087
Total Operating Expenses (TOE) $59,982
Net Operating Income (NOI) $102.105
Capitalization Rate (CAP) 5.1%
Operating Expense Ratio (OER) 37%
Sales Price X Net Income 19.5
35% Downpayment $698,250
Mortgage (@ 5% Rate) $1,296,750
Annual Debt Service (mortgage payments) $90,504
Cash Flow $11,601
Return on Investment (ROI) 1.7%

It's good to see that someone can get a positive cash-flow from their investment, this building shows $11,601 per year which is a 1.7% return on their investment of almost $700,000. The Cap Rate seems decent too, at 5.1%