Financial information from the sale of this 6 unit building that sold in November 2021

This property was located in the Carlington neighbourhood in the west end of Ottawa.

This building was fire retrofit and had four 2 bedroom apartments and two one bedroom apartments. This was a purpose built multifamily building with a recent new roof and recently fire retrofit too.

The property was listed for $1,800,000 and sold for $1,620,000.

  • Scheduled rental income was $74,000
  • Effective rental income was $71,780
  • Operating expenses of $22,590
  • Total Operating expenses, with 10% for maintenance/management $29,768
  • Net operating income of $42,012
  • Cap Rate was 2.59%
  • Operating expense ratio was 41.5%
  • Sold for 23 times the gross income
  • Sold for 39 times the Net Income

With a 35% downpayment of $567,000, this leaves a mortgage of $1,053,000, at a 3% rate, amortized over 25 years. The monthly mortgage payment would be $4,983, for an Annual Debt Service of $59,796 (this is the yearly mortgage payments).

The final cash flow on this building was minus $17,784 and the ROI (return on investment) was minus 3.14%.