Tri-Plex Property sold in September, in Overbrook
This property is a Triplex that was sold in September, it was listed at $769,900 and sold for $760,000 in just 26 days. This building was made up of a 1 bedroom apartment and Two 2 Bedroom Apartments, both of the 2 bedrooms were vacant at the time of sale. This property was Fire Retrofitted.
Below is the table where you can see all of the numbers, and at the bottom we give you the Return on Investment that the buyer will get based on a 35% down-payment.
Overbrook Triplex, Sold September 2018
|Scheduled Rental Income (SRI)||$52,800|
|Effective Rental Income (ERI)||$50,688|
|Total Operating Expenses (TOE)||$15,594|
|Net Operating Income (NOI)||$35,094|
|Capitalization Rate (CAP)||4.6%|
|Operating Expense Ratio (OER)||31%|
|Sales Price X Net Income||22%|
|Mortgage (@ 3.5%)||$494,000|
|Annual Debt Service (mortgage payments)||$29,597|
|Return on Investment (ROI)||2%|
This income property had some updates etc. in 2018, including: Updated Windows,Kitchen, Bathrooms, Electrical, Fresh Paint, Stainless Steel Appliances and Hardwood Floors.
When we look at the numbers, this building actually had a positive cash flow with 35% down, using a mortgage rate of 3.5%. At the end of the day, this buyer saw a Cap Rate of 4.6%, a cash flow of $5,497 and a Return On Investment of 2%.
Each tenant paid for their own Hydro and Hot Water Tank Rental cost
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