Each month we choose a new income property and show you the Rental Income, Operating Expenses, downpayment, mortgage payment, Cap Rates and more on the property. We dig into the financial breakdown to see what the Cash Flow and ROI are.
7 Unit Building in Vanier, sold in September 2021
This building was listed for $1,490,000 sold for $1,495,000. It was a Legal 7 unit building that was fire retrofit.
The Cap Rate was a decent 4.62% and the building shows a positive cash flow of $13,713 per year with a 35% downpayment of $514,500.
The Scheduled Rental Income Was $102,180, with an effective rental income of $99,115 after we deduct 3% for vacancy and bad debt.
The Operating Expenses were $21,226 and the Operating Expense Ratio was 31.4%.
The total operating expenses were $31,137 after we add in 10% of the Effective Rental Income (5% for maintenance and 5% for management)
This building sold for 15 times its Gross income and 22 times the Net Income.
That's an R.O.I. of 2.67%, remember, there will also be appreciation and the mortgage is contantly going down too.
Fourplex Property in Centretown, sold in August 2021
16 Unit Building in West Centretown, sold in July 2021
Brand New Triplex in West Centretown, sold June 2021
5 Unit Building in Lowertown, sold in May 2021
Triplex in Vanier, Sold in April 2021
8 Unit Building in West Centretown, sold March 2021
How do we value a property
How to calculate the value of any multi-family building, the movie below shows you all of the calculations to use to find out how much a property is worth. (do it yourself)