Financial information from the sale of this Legal 5-Unit that SOLD in October, 2022

This 5-Unit property was located in Central Ottawa, with four 1-bedroom units and one 3-bedroom unit. The property was listed for $1,750,000 and sold for $1,600,000.

This building seems to have sold for quite a bit less than asking price, so we suggest that something was found out about the property and the price renegotiated.

  • Scheduled Rental Income was $109,896
  • Effective Rental Income was $106,599
  • Operating expenses of $23,292
  • Total Operating Expenses, with 10% for maintenance/management $33,952
  • Net operating income of $72,647
  • Cap Rate was 4.54%
  • Operating Expense Ratio was 31.9%
  • Sold for 15 times the Gross Income
  • Sold for 22 times the Net Income

With a 40% down payment of $640,000, this leaves a mortgage of $960,000. At a 5.5% rate, amortized over 25 years, the monthly mortgage payment would be $5,860, for an Annual Debt Service of $70,320 (this is the yearly mortgage payments).

The final cash flow on this building was $2,327 and the ROI (return on investment) was 0.36%.