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