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.
- 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%.
