Financial information from the sale of this Legal 7-Unit that SOLD in November, 2022
This 7-Unit property was located in Central Ottawa, with three 1-bedroom units and four 2-bedroom units. The property was listed for $3,750,000 and sold for $3,400,000.
- Scheduled Rental Income was $198,600
- Effective Rental Income was $192,642
- Operating expenses of $26,767
- Total Operating Expenses, with 10% for maintenance/management $46,031
- Net operating income of $146,611
- Cap Rate was 4.31%
- Operating Expense Ratio was 23.9%
- Sold for 18 times the Gross Income
- Sold for 23 times the Net Income
With a 35% down payment of $1,190,000, this leaves a mortgage of $2,210,000. At a 5.5% rate, amortized over 25 years, the monthly mortgage payment would be $13,490, for an Annual Debt Service of $161,880 (this is the yearly mortgage payments).
The final cash flow on this building was -$15,269 and the ROI (return on investment) was -2.8%.
We wanted to see what it would take to get to a positive cash flow.
With a 42% down payment of $1,428,000, this leaves a mortgage of $1,972,000. At a 5.5% rate, amortized over 25 years, the monthly mortgage payment would be $12,037, for an Annual Debt Service of $144,444 (this is the yearly mortgage payments).
The final cash flow on this building was $2,167 and the ROI (return on investment) was 0.15%.
