Financial information from the sale of this Legal 6-Unit that SOLD in December, 2022

This 6-Unit property was located in Central Ottawa, with two 1-bedroom units and four 2-bedroom units. The property was listed for $1,999,999 and sold for $1,999,999.

  • Scheduled Rental Income was $138,300
  • Effective Rental Income was $134,151
  • Operating expenses of $30,131
  • Total Operating Expenses, with 10% for maintenance/management $43,546
  • Net operating income of $90,605
  • Cap Rate was 4.53%
  • Operating Expense Ratio was 32.5%
  • Sold for 15 times the Gross Income
  • Sold for 22 times the Net Income

With a 35% down payment of $700,000, this leaves a mortgage of $1,299,999. At a 5.5% rate, amortized over 25 years, the monthly mortgage payment would be $7,935, for an Annual Debt Service of $95,220 (this is the yearly mortgage payments).

The final cash flow on this building was -$4,615 and the ROI (return on investment) was -0.66%.

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

With a 39% down payment of $780,000, this leaves a mortgage of $1,219,999. At a 5.5% rate, amortized over 25 years, the monthly mortgage payment would be $7,447, for an Annual Debt Service of $89,364 (this is the yearly mortgage payments).

The final cash flow on this building was $1,241 and the ROI (return on investment) was 0.16%.