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.
|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|
|Annual Debt Service (mortgage payments)||$27,088|
|Return on Investment (ROI)||-1.8%|
Have a look at our current inventory of Multi-Family Properties for sale.