Financial information from the sale of this Central Ottawa 6-Unit that SOLD in May, 2023
This 6-Unit property is located in Central Ottawa, with six 2-bedroom units.
- Scheduled Rental Income was $85,692
- Effective Rental Income was $83,121
- Operating expenses of $27,904
- Total Operating Expenses, with 10% for maintenance/management $36,216
- Net operating income of $46,905
- Cap Rate was 3.91%
- Operating Expense Ratio was 43.6%
- Sold for 14 times the Gross Income
- Sold for 26 times the Net Income
With a 35% down payment of $420,000, this leaves a mortgage of $780,000. At a 5% rate, amortized over 25 years, the monthly mortgage payment would be $4,537, for an Annual Debt Service of $54,444 (this is the annual mortgage payment).
The final cash flow on this building was -$7,539 and the ROI (return on investment) was -1.79%.
We wanted to see how much of a down payment it would take to produce a positive cash flow.
With a 45% down payment of $540,000, this leaves a mortgage of $660,000. At a 5% rate, amortized over 25 years, the monthly mortgage payment would be $3,839, for an Annual Debt Service of $46,068 (this is the annual mortgage payment).
The final cash flow on this building was $837 and the ROI (return on investment) was 0.16%.
