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
Listed Price $1,350,000

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.