Financial information from the sale of this Legal 6-Unit that SOLD in February, 2023
This 6-Unit property was located in Arnprior, with two 1-bedroom units and four 2-bedroom units. The property was listed for $1,079,000 and sold for $1,000,000.
- Scheduled Rental Income was $58,404
- Effective Rental Income was $56,652
- Operating expenses of $16,208
- Total Operating Expenses, with 10% for maintenance/management $21,873
- Net operating income of $34,779
- Cap Rate was 3.48%
- Operating Expense Ratio was 38.6%
- Sold for 18 times the Gross Income
- Sold for 29 times the Net Income
With a 35% down payment of $350,000, this leaves a mortgage of $650,000. At a 5.5% rate, amortized over 25 years, the monthly mortgage payment would be $3,968, for an Annual Debt Service of $47,616 (this is the yearly mortgage payments).
The final cash flow on this building was -$12,837 and the ROI (return on investment) was -3.67%.
We wanted to see what it would take to get to a positive cash flow.
With a 53% down payment of $530,000, this leaves a mortgage of $470,000. At a 5.5% rate, amortized over 25 years, the monthly mortgage payment would be $2,869, for an Annual Debt Service of $34,428 (this is the yearly mortgage payments).
The final cash flow on this building was $351 and the ROI (return on investment) was 0.07%.