This month we are analyzing the recent sales of Two Multi-Unit Residential Buildings that sold in February

The first One is a Triplex in Lowertown and the other was a 6 Unit Building from the Viscount Alexander Park Neighbourhood.

Below are the financials for the Triplex in Lowertown

Lowertown Triplex Building, Sold Feb. 2018
Listed Price $899,900

Selling Price $945,000
Scheduled Rental Income (SRI) $58,680
Effective Rental Income (ERI) $56,333
Total Operating Expenses (TOE) $19,602
Net Operating Income (NOI) $36,731
Capitalization Rate (CAP) 3.9%
Operating Expense Ratio (OER) 35%
Sales Price X Net Income  
35% Downpayment $330,750
Mortgage (@ 3.25%) $614,250
Annual Debt Service (mortgage payments) $37,191
Cash Flow -$460
Return on Investment (ROI) -0.1%

Financials for the 6 Unit Building in Viscount Alexander Park

Viscount Alexander Park 6 Unit Building, Sold Feb. 2018
Listed Price $1,550,000

Selling Price $1,510,000
Scheduled Rental Income (SRI) $100,980
Effective Rental Income (ERI) $96,940
Total Operating Expenses (TOE) $33,124
Net Operating Income (NOI) $63,816
Capitalization Rate (CAP) 4.2%
Operating Expense Ratio (OER) 34%
Sales Price X Net Income  
35% Downpayment $528,500
Mortgage (@ 3.25%) $981,500
Annual Debt Service (mortgage payments) $72,579
Cash Flow -$8763
Return on Investment (ROI) -1.7%

The Mortgage Rates used for the 2 sales above would differ, because Banks charge a different rate for larger Multi-Family homes compared with smaller Ones.

We are assuming that the Triplex Buyer above got a Mortgage Rate of 3.6% and the Buyer of the 6-Unit building would pay 2 points more, at 5.6%.

Are you looking to buy an Income Property, have a look at the current listings

Want to sell your Multi-Family Building, get an appraisal here