Financial information from the sale of this Central Ottawa 6-Plex that SOLD in June, 2023
This 6-Unit property is located in Central Ottawa, with six 2 bachelor units, 3 1-bedroom units, and 1 3-bedroom unit.
- Scheduled Rental Income was $101,400
- Effective Rental Income was $98,358
- Operating expenses of $34,646
- Total Operating Expenses, with 10% for maintenance/management $44,482
- Net operating income of $53,876
- Cap Rate was 3.45%
- Operating Expense Ratio was 45.2%
- Sold for 16 times the Gross Income
- Sold for 29 times the Net Income
With a 35% down payment of $546,000, this leaves a mortgage of $1,014,000. At a 5.25% rate, amortized over 25 years, the monthly mortgage payment would be $6,043, for an Annual Debt Service of $72,516 (this is the annual mortgage payment).
The final cash flow on this building was -$18,640 and the ROI (return on investment) was -3.41%.
We wanted to see how much of a down payment it would take to produce a positive cash flow.
With a 52% down payment of $811,200, this leaves a mortgage of $748,800. At a 5.25% rate, amortized over 25 years, the monthly mortgage payment would be $4,463, for an Annual Debt Service of $53,556 (this is the annual mortgage payment).
The final cash flow on this building was $320 and the ROI (return on investment) was 0.04%.
