This was a building in the Hintonburg Neighbourhood that sold in December 2019, have a look at the numbers.

The table below gives you a quick overall look at the numbers. You will see that this buyer, even with a downpayment of $262,000 still loses money every year, and has a negative ROI as well.

Triplex Sold December 2019
Listed Price $

Selling Price $750,000
Scheduled Rental Income (SRI) $39,720
Effective Rental Income (ERI) $38,528
Total Operating Expenses (TOE) $16,087
Net Operating Income (NOI) $22,441
Capitalization Rate (CAP) 3%
Operating Expense Ratio (OER) 42%
Sales Price X Net Income 33
35% Downpayment $262,500
Mortgage $487,500
Annual Debt Service (mortgage payments) $27,088
Cash Flow -$4,647
Return on Investment (ROI) -1.8%

Have a look at our current inventory of Multi-Family Properties for sale.