This month we are looking at the financial information on the recent sale of a Triplex from the Glebe
This property sold for $70,000 under it's asking price, so there were likely not multiple offers on this One, as we are seeing with a lot of Income Properties right now. It did sell pretty quick, just 22 days on the Market.
This was a Legal Triplex, that had Operating Expenses which were 35% of it's income and a Cap Rate of 4.2%, which can be considered very decent for an upscale neighbourhood like The Glebe.
Glebe Triplex, Sold April 2018
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| Selling Price | $1,280,000 |
| Scheduled Rental Income (SRI) | $85,800 |
| Effective Rental Income (ERI) | $82,368 |
| Total Operating Expenses (TOE) | $28,477 |
| Net Operating Income (NOI) | $53,891 |
| Capitalization Rate (CAP) | 4.2% |
| Operating Expense Ratio (OER) | 35% |
| Sales Price X Net Income | 24 |
| 35% Downpayment | $448,000 |
| Mortgage (@ 3.8%) | $832,000 |
| Annual Debt Service (mortgage payments) | $51,444 |
| Cash Flow | $2,447 |
| Return on Investment (ROI) | 0.5% |
The buyer here will have a positive cash flow of almost $2500 per year, with a 35% downpayment and a Return-On-Investment of 0.5%.
For the purposes of this situation we are assuming that this buyer got a mortgage rate of 3.8%, which might be a tad on the high end.
If you are looking to buy, check out all of the current Multi-Family Homes for sale at our site.