The financials we are looking at for May is on the sale of a 5 Unit Apartment Building in the Vanier Neighbourhood
This building took 125 days to sell and it sold for $790,000 which is $10,000 below the listed price. It was Fire Retrofit and had 6 parking spaces. It had Apartments with 1 bed and a den as well as 2 bedroom apartments.
Below you can see all of the numbers that calculate whether this buyer makes any money on this building, and at the end of the day, he does make a return on investment here of 2.74%, very acceptable!
Vanier 5 Unit Building, Sold May 2018
|Scheduled Rental Income (SRI)||$64,620|
|Effective Rental Income (ERI)||$62,035|
|Total Operating Expenses (TOE)||$23,672|
|Net Operating Income (NOI)||$38,363|
|Capitalization Rate (CAP)||4.9%|
|Operating Expense Ratio (OER)||38%|
|Sales Price X Net Income||20.6|
|Mortgage (@ 3.8%)||$513,500|
|Annual Debt Service (mortgage payments)||$30,765|
|Return on Investment (ROI)||2.74%|
From the table above, you can see that this buyer has a positive cash flow of $7598 per year on this property, with a 35% downpayment and the mortgage rate assumed here was 3.5%.
Are you looking to buy, check out a selection of Income Property for Sale