Financial information from the sale of this Rural South-West Ottawa 6-Plex that SOLD in June, 2023
This 6-Unit Commercial property is located in Rural South-West Ottawa, with one bachelor unit, and five 1-bedroom units.
The property was listed for $990,990 and sold for $990,000.
- Scheduled Rental Income was $120,000
- Effective Rental Income was $116,400
- Operating expenses of $26,811
- Total Operating Expenses, with 10% for maintenance/management $38,451
- Net operating income of $77,949
- Cap Rate was 7.87%
- Operating Expense Ratio was 33.0%
- Sold for 9 times the Gross Income
- Sold for 13 times the Net Income
With a 35% down payment of $346,500, this leaves a mortgage of $643,500. At a 5.25% rate, amortized over 25 years, the monthly mortgage payment would be $3,835, for an Annual Debt Service of $46,020 (this is the annual mortgage payment).
The final cash flow on this building was $31,929 and the ROI (return on investment) was 9.21%.
This is an example of positive cash flow!
