Financial information from the sale of this East Ottawa 5-Unit that SOLD in April, 2023

This 5-Unit property was located in East Ottawa, with five 1-bedroom units. 

The property was listed for $1,349,000 and sold for $1,335,000.

  • Scheduled Rental Income was $82,735
  • Effective Rental Income was $80,253
  • Operating expenses of $16,595
  • Total Operating Expenses, with 10% for maintenance/management $24,620
  • Net operating income of $55,633
  • Cap Rate was 4.17%
  • Operating Expense Ratio was 30.7%
  • Sold for 17 times the Gross Income
  • Sold for 24 times the Net Income

With a 35% down payment of $467,250, this leaves a mortgage of $867,750. At a 5% rate, amortized over 25 years, the monthly mortgage payment would be $5,047, for an Annual Debt Service of $60,564 (this is the yearly mortgage payments).

The final cash flow on this building was -$4,931 and the ROI (return on investment) was -1.06%.

We wanted to see what it would take to get to a positive cash flow.

With a 41% down payment of $547,350, this leaves a mortgage of $787,650. At a 5% rate, amortized over 25 years, the monthly mortgage payment would be $4,581, for an Annual Debt Service of $54,972 (this is the yearly mortgage payments).

The final cash flow on this building was $661 and the ROI (return on investment) was 0.12%.