Have a look at the financials on this Triplex and you decide if it was a good buy.
This was a bit different, as it was a brand new build from 2021, it was located in Centretown West and it sold for $72,000 over the list price.
Scheduled rental income her was $92,000 and an effective rental income of $89,000.
Operating expenses here were $15,700, which gives us total operating expenses of $24,600.
This gives us a Net Operating Income of $64,400 and that's a Cap of 3.2%.
When we see a Cap Rate this low we know there's danger ahead, in terms of the ROI!
Operating expense ratio was 27.6%, which is excellent, does not get much better than that.
This building sold for 22 times the gross income and 31 times the Net Income.
With a 35% downpayment, which ois $700,000, leaves us with a mortgage of $1,300,000. This mortgage will cost the buyer $6000 per month at 3% amortized over 25 years.
The final cash flow here is a negative $9,465 which is a negative ROI of 1.35%.
The image below gives you all of the financial information about this Sold building. It was listed for $1,930,000 and sold for just over $2 Million. Because it's a brand new build, there is no need for a Fire Retrofit. It was built in 2021.
If you want to compare other income properties that have sold in the previous months, have a look at the archive of Sold Multi-Family Buildings