Financial analysis from the sale of this 21-Unit Multifamily

This  property is located in Central Ottawa, with 21 Bachelor units. The property was listed for $3,800,000 and sold for $3,700,000.

  • Scheduled Rental Income was $193,331
  • Effective Rental Income was $187,531
  • Operating expenses of $72,754
  • Total Operating Expenses, with 10% for maintenance/management $91,507
  • Net operating income of $96,024
  • Cap Rate was 2.60%
  • Operating Expense Ratio was 48.8%
  • Sold for 20 times the Gross Income
  • Sold for 39 times the Net Income

With a 67% down payment of $2,479,000, this leaves a mortgage of $1,221,000. At a 6% rate, amortized over 25 years, the monthly mortgage payment would be $7,812, for an Annual Debt Service of $93,744 (this is the annual mortgage payment).

The final cash flow on this building was $2,280 and the ROI (return on investment) was 0.09%.