Here is the breakdown of the financials from the sale of this triplex from an east end neighbourhood.

This building was listed for $1,250,000 and sold for $1,250,000 (full price)

  • Scheduled Rental Income was $64,394
  • Effective Rental Income was $62,462
  • Operating expenses of $12,111
  • Total Operating Expenses, with 10% for maintenance/management $18,357
  • Net operating income of $44,105
  • Cap Rate was 3.5%
  • Operating Expense Ratio was 29.4%
  • Sold for 20 times the Gross Income

The building Sold for 28 times the Net Income. With a 35% down payment of $437,500, this leaves a mortgage of $812,500. At a 3% mortgage rate, amortized over 25 years, the monthly mortgage payment would be $4,274, for an Annual Debt Service of $51,288 (this is the yearly mortgage payments).

The final cash flow on this building was minus $7,183 and the ROI (return on investment) was minus 1.64%.