Financial information from the sale of this Legal Triplex that SOLD in March, 2023

This 3-Unit property was located in Central Ottawa, with one 1-bedroom units and two 2-bedroom units. 

The property was listed for $1,550,000 and sold for $1,535,000.
  • Scheduled Rental Income was $73,380
  • Effective Rental Income was $71,179
  • Operating expenses of $17,145
  • Total Operating Expenses, with 10% for maintenance/management $24,263
  • Net operating income of $46,916
  • Cap Rate was 3.06%
  • Operating Expense Ratio was 34.1%
  • Sold for 22 times the Gross Income
  • Sold for 33 times the Net Income

With a 35% down payment of $537,250, this leaves a mortgage of $997,750. At a 5% rate, amortized over 25 years, the monthly mortgage payment would be $5,860, for an Annual Debt Service of $70,320 (this is the yearly mortgage payments).

The final cash flow on this building was -$23,404 and the ROI (return on investment) was -4.36%.

We wanted to see what it would take to get to a positive cash flow.

With a 57% down payment of $874,950, this leaves a mortgage of $660,050. At a 5% rate, amortized over 25 years, the monthly mortgage payment would be $3,878, for an Annual Debt Service of $46,536 (this is the yearly mortgage payments).

The final cash flow on this building was $380 and the ROI (return on investment) was 0.04%.