Central Ottawa 6-Unit

This purpose built 6-Unit property is located in Central Ottawa, with two 1-Bedroom units, and four 2-Bedroom units. The property was listed for $2,125,000, and sold for $1,987,500.

  • Scheduled Rental Income was $135,743
  • Effective Rental Income was $131,671
  • Operating expenses of $29,303
  • Total Operating Expenses, with 10% for maintenance/management $42,470
  • Net operating income of $89,201
  • Cap Rate was 4.49%
  • Operating Expense Ratio was 32.3%
  • Sold for 15 times the Gross Income
  • Sold for 22 times the Net Income

With an 37% down payment of $735,375, this leaves a mortgage of $1,252,125. At a 5.2% rate, amortized over 25 years, the monthly mortgage payment would be $7,426, for an Annual Debt Service of $89,112 (this is the annual mortgage payment).

The final cash flow on this building was $89 and the ROI (return on investment) was 0.01%.