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
|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|
|Mortgage (@ 3.8%)||$832,000|
|Annual Debt Service (mortgage payments)||$51,444|
|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.