Financial information from the sale of this Legal Fourplex that SOLD in July, 2022
This 4-Unit property with no vacancies was located in Central Ottawa, with three 4-bedroom units and one 2-bedroom unit.The property was listed for $1,599,000 and sold for $1,495,000
- Scheduled Rental Income was $111,533
- Effective Rental Income was $108,187
- Operating expenses of $28,241
- Total Operating Expenses, with 10% for maintenance/management $39,060
- Net operating income of $69,127
- Cap Rate was 4.62%
- Operating Expense Ratio was 36.1%
- Sold for 14 times the Gross Income
- Sold for 22 times the Net Income
With a 35% down payment of $523,250, this leaves a mortgage of $971,750. At a 5% rate, amortized over 25 years, the monthly mortgage payment would be $5,652, for an Annual Debt Service of $67,824 (this is the yearly mortgage payments).
The final cash flow on this building was $1,303 and the ROI (return on investment) was 0.25%.