Here is the financial information from the recent sale of a 6-Unit Income Property that sold last month.
The property below was a legal 6 unit and had a 7th apartment too.
At the end of the day, you can see that with a 35% down-payment this buyer took a loss of over $22,000 per year, or a -5% return on this investment.
Westboro 6 Units, Sold March 2019
|Scheduled Rental Income (SRI)||$62,000|
|Effective Rental Income (ERI)||$59,932|
|Total Operating Expenses (TOE)||$26,413|
|Net Operating Income (NOI)||$33,519|
|Capitalization Rate (CAP)||2.7%|
|Operating Expense Ratio (OER)||44%|
|Sales Price X Net Income||37%|
|Mortgage (@ 5%)||$800,150|
|Annual Debt Service (mortgage payments)||$55,844|
|Return on Investment (ROI)||(-5%)|
Are you currently looking to buy any type of income property, if so, have a look at these Buildings for Sale