Invest in the small towns around Ottawa
This month we are going to look at the sale of this 35 unit apartment building in a small town near Ottawa. This will show you the numbers on an income property just outside Ottawa.
Small Town Outside Ottawa
35 Unit Apartment Building Sold Oct. 2019
|Scheduled Rental Income (SRI)||$464,344|
|Effective Rental Income (ERI)||$450,414|
|Total Operating Expenses (TOE)||$151,990|
|Net Operating Income (NOI)||$298,424|
|Capitalization Rate (CAP)||4.7%|
|Operating Expense Ratio (OER)||34%|
|Sales Price X Net Income||21|
|Mortgage (@ 4.8%)||$4,160,000|
|Annual Debt Service (mortgage payments)||$284,676|
|Return on Investment (ROI)||+0.6%|
The property we looked at this month gave the buyer a positive cash flow on this building with a 35% downpayment. They got a Cap Rate of 4.7% and more importantly, a positive cash flow of $13,748 per year.
If you want to invest in any type of income property, get in touch. Have a look at the current inventory of Multi-Family Property for Sale