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%.