Financial information from the sale of this Legal 7-Unit Commercial property that SOLD in June, 2022
This 7-Unit property with no vacancies was located in Central Ottawa, with Six 4-bedroom units and One 3-bedroom unit. The property was listed for $3,100,000 and sold for $3,050,000.
- Scheduled Rental Income was $218,728
- Effective Rental Income was $212,166
- Operating expenses of $48,849
- Total Operating Expenses, with 10% for maintenance/management $70,066
- Net operating income of $142,101
- Cap Rate was 4.66%
- Operating Expense Ratio was 33%
- Sold for 14 times the Gross Income
- Sold for 21 times the Net Income
With a 35% down payment of $1,067,500, this leaves a mortgage of $1,982,000. At a 5% rate, amortized over 25 years, the monthly mortgage payment would be $11,530, for an Annual Debt Service of $138,360 (this is the yearly mortgage payments).
The final cash flow on this building was $3,741 and the ROI (return on investment) was 0.35%.
