Financials on an 8 Unit Multi-Family Building in the Carlington Neighbourhood, Ottawa

Here are the full financials on a recent sale of an Income Property that had 8 apartments in it, which was located in Carlington, in Ottawas' West End.

Carlington 8 Unit Building, Sold April 2017 

Selling Price $1,240,000
Scheduled Rental Income (SRI) $98,556
Effective Rental Income (ERI) $94,614
Total Operating Expenses (TOE) $31,106
Net Operating Income (NOI) $63,508
Capitalization Rate (CAP) 5%
Operating Expense Ratio (OER) 33%
Sales Price X Gross Income (ERI) 13
Sales Price X Net Income 20
35% Downpayment $434,000
Mortgage (@ 3.3%) $806,000
Annual Debt Service (mortgage payments) $47,280
Cash Flow $16,228
Return on Investment (ROI) 3.7%

This building was really quite nice and was very well taken care of, and the 5% Cap Rate is considered a tad low for the Carlington Neighbourhood, but at the end of the day, the buyer of this property saw a 3.7% return on their investment with a 35% downpayment.

This means they got a positive cash flow of over $16,000 on a total investment of $434,000, and they will also see appreciation and will be buying down their mortgage as time goes by.

If you are looking to buy or sell an Income or Investment Property in Carlington, get in touch with Patrick Walchuk.

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