This Triplex sold in November, was in a very good location and it will be owner-occupied.
This building sold pretty quick, and for $19,900 less than the asking price. It was fire retrofit and it had Two 1 bedrooms and One 1 bedroom apartment.
West CentretownTriplex, Sold November 2018
|
|
| Selling Price | $830,000 |
| Scheduled Rental Income (SRI) | $50,340 |
| Effective Rental Income (ERI) | $48,326 |
| Total Operating Expenses (TOE) | $18,166 |
| Net Operating Income (NOI) | $30,160 |
| Capitalization Rate (CAP) | 3.6% |
| Operating Expense Ratio (OER) | 38% |
| Sales Price X Net Income | 28% |
| 35% Downpayment | $291,550 |
| Mortgage (@ 3.5%) | $541,450 |
| Annual Debt Service (mortgage payments) | $32,784 |
| Cash Flow | $-2,624 |
| Return on Investment (ROI) | -1% |
This property is a bit different from others we have looked at recently, as the buyer will be living in One of the apartments, usually we look at buildings that are purely as an income investment.
So, when we see that this building has a negative cash-flow as well as the ROI of -1%, it might not be as bad as it first appears. This smart buyer will be living in a very nice apartment, in a great neighbourhood and near the new LRT line.
If you are considering buying an income property, get in touch after browsing through all of the Multi-Family's we have for sale
If you want to sell your building, let us give you a professional assessment of what it might be worth.