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
Listed Price $6,575,000

Selling Price $6,400,000
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
35% Downpayment $2,240,000
Mortgage (@ 4.8%) $4,160,000
Annual Debt Service (mortgage payments) $284,676
Cash Flow +$13,748
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