Analyzing the financials on a Fourplex in Sandy Hill that sold in December 2018
This building sold for $1,495,000, $54,000 less than the listed price. There were 3 x 3 bedroom apartments and 1 x 4 bedroom apartment. All of the units in this building pay for their own Gas, Heat and Hydro.
This building was Fire Retrofit, had 4 parking spots, was renovated and was just blocks to the river and parks as well as the University of Ottawa. It sold in 83 days.
Sandy Hill Fourplex, Sold December 2018
|Scheduled Rental Income (SRI)||$118,670|
|Effective Rental Income (ERI)||$115,110|
|Total Operating Expenses (TOE)||$38,222|
|Net Operating Income (NOI)||$76,888|
|Capitalization Rate (CAP)||5.1%|
|Operating Expense Ratio (OER)||33%|
|Sales Price X Net Income||19%|
|Mortgage (@ 3.7%)||$971,750|
|Annual Debt Service (mortgage payments)||$59,478|
|Return on Investment (ROI)||3.3%|
This income property actually sees a positive cash flow, 3.3 return on investment and a 5.1 Cap Rate. All of these numbers look great compared to other buildings we have analyzed recently, which had low or even negative numbers.
If you are considering buying an income property, have a look at some other Multi-Family's for sale
If you want to sell your building, let us give you a professional assessment of what it might be worth.