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
|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|
|Mortgage (@ 5% Rate)||$1,296,750|
|Annual Debt Service (mortgage payments)||$90,504|
|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%