Have a look at the financials from the sale of this 3 unit building located in the West End of Ottawa
The property we are profiling today was located Between Greenbank and Woodroffe Avenue, with 2 x three bedroom apartments and 1 one bedroom apartment in the basement. We judged this building as being very average.
The building was listed at $899,000 and sold for $845,000.
The scheduled rental income was $43,000
Effective Rental Income was $42,000
Operating Expenses were $13,500
Total Operating Expenses were $17,600
Net Operating Income was $24,000
Cap Rate was 2.85%
Operating expense ratio was 42.4%, pretty high
Sold for 20 times the Gross Income and 35 times the Net Income
Going in with a 35% downpayment of $295,000 leaves a mortgage for around $550,000 (3% mortgage with 25 year amortization)
Annual Debt Service of over $31,000 (mortgage payments)
Cash Flow is negative $7146
Return on Investment (ROI) for this triplex building was 2%
You make up your own mind if this was a good deal.
Looking to buy a Multi, have a look at Current Income Property Listings
