Financial information from the sale of this 4 Unit Building that sold in February, 2022
This property was located in the Vanier neighbourhood in the east end of Ottawa, it had three 2-bedroom apartments and one 3-bedroom apartment. It was a multi-family building and recently fire retrofit.
The property was listed for $929,000 and sold for $875,000.
- Scheduled Rental Income was $52,842
- Effective Rental Income was $51,257
- Operating expenses of $17,542
- Total Operating Expenses, with 10% for maintenance/management $17,542
- Net operating income of $28,589
- Cap Rate was 3.27%
- Operating Expense Ratio was 44.2%
- Sold for 17 times the Gross Income
- Sold for 31 times the Net Income
With a 35% down payment of $306,250, this leaves a mortgage of $568,750. At a 3% rate, amortized over 25 years, the monthly mortgage payment would be $2,692, for an Annual Debt Service of $32,304 (this is the yearly mortgage payments).
The final cash flow on this building was minus $3,715 and the ROI (return on investment) was minus 1.21%.