A Triplex in Vanier got 3 offers and sold quickly for over asking price
In this months video Patrick discusses this quite interesting property. He actually showed it to a client and it was in pretty good shape.
Here are the financials from 2 recent sales, One is the triplex property we mentioned above.
1. Hintonburg 9 unit building:
This property was not fire retrofitted and it sold for $1,640,000, which was 93% of the asking price. So that's less than the average.
It sold for a Cap Rate of 4.3%
Operating Expense ratio was 44%, which is pretty high.
As an example, if you bought this property and put down 35% your R.O.I. on it would be 1.3%.
2. Vanier Triplex:
This was a 3 door multifamily that was in decent shape, and listed at $300,000. It sold for $318,000 with multiple offers.
The Cap Rate on this property was 4.9%, pretty good, but Operating Expenses ate up 44% of the income.
Again, if you bought this property and went in with 35% down, your Return on Investment (ROI) would be 3%.
A lot of our investors talk about the cost per door, and for this property that is $100,000 per door.
Home Depot sells them a lot cheaper!!