Financial information from the sale of this 6 Unit Building that sold in March, 2022

This property was located in a Central West neighbourhood of Ottawa, with four 2-bedroom apartments and two 1-bedroom apartments. It was a purpose-built, multi-family building.

The property was listed for $1,499,000 and sold for $1,450,000.

  • Scheduled Rental Income was $70,838
  • Effective Rental Income was $68,713
  • Operating expenses of $19,753
  • Total Operating Expenses, with 10% for maintenance/management $26,624
  • Net operating income of $42,089
  • Cap Rate was 2.90%
  • Operating Expense Ratio was 38.7%
  • Sold for 21 times the Gross Income
  • Sold for 34 times the Net Income

With a 35% down payment of $507,500, this leaves a mortgage of $942,500. At a 3% rate, amortized over 25 years, the monthly mortgage payment would be $4,461, for an Annual Debt Service of $53,532 (this is the yearly mortgage payments).

The final cash flow on this building was minus $11,443 and the ROI (return on investment) was minus 2.25%.