Financial breakdown on the sale of this Centrally located fourplex, sold in December 2021.
This 4 unit building was listed for $1,475,000 and it sold for $1,400,000. It was fire retrofit and had a Cap Rate of 3.8%.
Main Financial Numbers from this sale
- Scheduled rental income was $81,439
- Effective rental income of $78,996
- Operating expenses were $17,806
- Total operating expenses were $25,706
- Net Operating income was $53,290
- Operating expense ratio of 32.5%
- Sold for 18 times the gross income
- Sold for 26 times the Net Income
With a 35% downpayment of $490,000, the mortgage amount would be $910,000, which would cost this buyer $4307 per month, or $51,684 yearly as the annual mortgage payments or ADS.
This gives us a cash flow of $1,606 per year, or a return on this investment of 0.33%.
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