Financial Analysis, Rental Buildings

Analyzing the Financials

From Recently Sold Rental Buildings.

Patrick Walchuk takes a recent sale of a Multi Unit Residential Building in the Ottawa area and then breaks down the numbers to see if was a good investment. If you want to see even more, we have an archive at our YouYube Channel for Investors

Central Ottawa 10-Unit that SOLD in May-2025

This 10-Unit is located in Central Ottawa, with four Bachelor Apartments, four 1-Bedroom Units, one 2-Bedroom Unit, and one 3-Bedroom Unit. The property was listed for $2,595,000, and sold for $2,500,000.

Scheduled Rental Income was $170,983
Effective Rental Income was $165,854
Operating expenses of $44,975
Total Operating Expenses, with 10% for maintenance/management $61,560
Net operating income of $104,293
Cap Rate was 4.17%
Operating Expense Ratio was 37.1%
Sold for 15 times the Gross Income
Sold for 24 times the Net Income

With a 42% down payment of $1,050,000, this leaves a mortgage of $1,450,000. At a 5.25% rate, amortized over 25 years, the monthly mortgage payment would be $8,641, for an Annual Debt Service of $103,692 (this is the annual mortgage payment).

The final cash flow on this building was $601 and the ROI (return on investment) was 0.06%.

South Ottawa Tripex that SOLD in April, 2025

This property is located in South Ottawa, with three 2-bedroom units. The property was listed for $799,900 and sold for $755,000.

Scheduled Rental Income was $57,600
Effective Rental Income was $55,872
Operating expenses of $18,613
Total Operating Expenses, with 10% for maintenance/management $24,200
Net operating income of $31,672
Cap Rate was 4.19%
Operating Expense Ratio was 43.3%
Sold for 14 times the Gross Income
Sold for 24 times the Net Income

With a 40% down payment of $302,000, this leaves a mortgage of $453,000. At an interest rate of 5%, amortized over 25 years, the monthly mortgage payment would be $2,635, for an Annual Debt Service of $31,620 (this is the annual mortgage payment).

The final cash flow on this building was $52 and the ROI (return on investment) was 0.02%.

Central Tripex that SOLD in March, 2025

This property is located in Central Ottawa, with two 2-bedroom units and one 1-bedroom unit. The property was listed for $860,000 and sold for $805,000.

Scheduled Rental Income was $62,007
Effective Rental Income was $60,147
Operating expenses of $16,725
Total Operating Expenses, with 10% for maintenance/management $22,740
Net operating income of $37,407
Cap Rate was 4.65%
Operating Expense Ratio was 37.8%
Sold for 13 times the Gross Income
Sold for 22 times the Net Income

With a 34% down payment of $273,700, this leaves a mortgage of $531,300. At an interest rate of 5%, amortized over 25 years, the monthly mortgage payment would be $3,090, for an Annual Debt Service of $37,080 (this is the annual mortgage payment).

The final cash flow on this building was $327 and the ROI (return on investment) was 0.12%.

Central 5 Unit Building Sold in Oct. 2024

This 5-Unit is located in Central Ottawa, with one Bachelor Apartment, one 1-Bedroom Unit, one 2-Bedroom Unit, and two 3-Bedroom Units. The property was listed for $1,200,000, and sold for $1,145,000.

Scheduled Rental Income was $106,030
Effective Rental Income was $102,849
Operating expenses of $20,005
Total Operating Expenses, with 10% for maintenance/management $30,290
Net operating income of $72,559
Cap Rate was 6.34%
Operating Expense Ratio was 29.5%
Sold for 11 times the Gross Income
Sold for 16 times the Net Income

With a 20% down payment of $229,000, this leaves a mortgage of $916,000. At a 4.7% rate, amortized over 25 years, the monthly mortgage payment would be $5,172, for an Annual Debt Service of $62,064 (this is the annual mortgage payment).

The final cash flow on this building was $10,495 and the ROI (return on investment) was 4.58%.

East Ottawa 4 Unit Building Sold in Oct. 2024

This property is located in East Ottawa, with four 2-bedroom units. The property was listed for $1,449,900 and sold for $1,370,000.

Scheduled Rental Income was $88,800
Effective Rental Income was $86,136
Operating expenses of $16,166
Total Operating Expenses, with 10% for maintenance/management $24,780
Net operating income of $61,356
Cap Rate was 4.48%
Operating Expense Ratio was 28.8%
Sold for 16 times the Gross Income
Sold for 22 times the Net Income

With a 34% down payment of $465,800, this leaves a mortgage of $904,200. At an interest rate of 4.7%, amortized over 25 years, the monthly mortgage payment would be $5,106, for an Annual Debt Service of $61,266 (this is the annual mortgage payment).

The final cash flow on this building was $90 and the ROI (return on investment) was 0.02%.

Central Triplex Sold in Sept. 2024

This property is located in Central Ottawa, with one 1-bedroom unit, and two 2-bedroom units. The property was listed for $875,000 and sold for $830,000.

Scheduled Rental Income was $65,200
Effective Rental Income was $63,244
Operating expenses of $19,775
Total Operating Expenses, with 10% for maintenance/management $26,099
Net operating income of $37,145
Cap Rate was 4.48%
Operating Expense Ratio was 41.3%
Sold for 13 times the Gross Income
Sold for 22 times the Net Income

With a 34% down payment of $282,200, this leaves a mortgage of $547,800. At an interest rate of 4.7%, amortized over 25 years, the monthly mortgage payment would be $3,093, for an Annual Debt Service of $37,116 (this is the annual mortgage payment).

The final cash flow on this building was $29 and the ROI (return on investment) was 0.01%.

Central 6 Unit Building Sold in Aug. 2024

This Six to Eight Unit is located in Central Ottawa, with four 1-Bedroom Units, and four 2-Bedroom Units. The property was listed for $1,397,000, and sold for $1,366,200.

Scheduled Rental Income was $122,392
Effective Rental Income was $118,720
Operating expenses of $42,515
Total Operating Expenses, with 10% for maintenance/management $54,387
Net operating income of $64,333
Cap Rate was 4.71%
Operating Expense Ratio was 45.8%
Sold for 12 times the Gross Income
Sold for 21 times the Net Income

With an 31% down payment of $423,522, this leaves a mortgage of $942,678. At a 4.7% rate, amortized over 25 years, the monthly mortgage payment would be $5,323, for an Annual Debt Service of $63,876 (this is the annual mortgage payment).

The final cash flow on this building was $457 and the ROI (return on investment) was 0.11%.