Ottawa Real Estate Blog

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

Analyzing the Financials

Triplex that SOLD in July, 2025

This property is located in Far West Ottawa, with two 3-bedroom units, one 2-bedroom unit. 

The property was listed for $1,225,000 and sold for $1,195,600.

• Scheduled Rental Income was $80,400
• Effective Rental Income was $77,988
• Operating expenses of $16,910
• Total Operating Expenses, with 10% for maintenance/management $24,709
• Net operating income of $53,279
• Cap Rate was 4.46%
• Operating Expense Ratio was 31.7%
• Sold for 15 times the Gross Income 
• Sold for 22 times the Net Income

With a 35% down payment of $418,460, this leaves a mortgage of $777,140. At an interest rate of 4.6%, amortized over 25 years, the monthly mortgage payment would be $4,343, for an Annual Debt Service of $52,116 (this is the annual mortgage payment).

The final cash flow on this building was $1,163 and the ROI (return on investment) was 0.28%.

Fourplex that SOLD in July, 2025

This 4-Unit is located in Central Ottawa, with two 2-Bedroom Units, and 2 1-Bedroom Units. 

The property was listed for $989,000, and sold for $950,500.

• Scheduled Rental Income was $87,000
• Effective Rental Income was $84,390
• Operating expenses of $26,657
• Total Operating Expenses, with 10% for maintenance/management $35,096
• Net operating income of $49,294
• Cap Rate was 5.19%
• Operating Expense Ratio was 41.6%
• Sold for 11 times the Gross Income
• Sold for 19 times the Net Income

With a 23% down payment of $218,500, this leaves a mortgage of $731,500. At a 4.6% rate, amortized over 25 years, the monthly mortgage payment would be $4,090, for an Annual Debt Service of $49,080 (this is the annual mortgage payment).

The final cash flow on this building was $214 and the ROI (return on investment) was 0.10%.

Triplex that SOLD in June, 2025

This 3-Unit is located in South Ottawa, with two 2-Bedroom Units, one 1-Bedroom Unit. 

The property was listed for $799,000, and sold for $750,500.

• Scheduled Rental Income was $52,200
• Effective Rental Income was $50,634
• Operating expenses of $10,974
• Total Operating Expenses, with 10% for maintenance/management $16,037
• Net operating income of $34,597
• Cap Rate was 4.61%
• Operating Expense Ratio was 31.7%
• Sold for 15 times the Gross Income
• Sold for 22 times the Net Income

With a 32% down payment of $240,160, this leaves a mortgage of $510,340. At a 4.6% rate, amortized over 25 years, the monthly mortgage payment would be $2,854, for an Annual Debt Service of $34,248 (this is the annual mortgage payment).

The final cash flow on this building was $349 and the ROI (return on investment) was 0.15%.

8-Unit that SOLD in June, 2025

This property is located in Central Ottawa, with three 2-bedroom units, two 1-bedroom units and 3 bachelor suites. 

The property was listed for $1,595,000 and sold for $1,595,000.

• Scheduled Rental Income was $138,047
• Effective Rental Income was $133,906
• Operating expenses of $36,770
• Total Operating Expenses, with 10% for maintenance/management $50,161
• Net operating income of $83,745
• Cap Rate was 5.25%
• Operating Expense Ratio was 37.5%
• Sold for 12 times the Gross Income 
• Sold for 19 times the Net Income

With a 22% down payment of $350,900, this leaves a mortgage of $1,244,100. At an interest rate of 4.6%, amortized over 25 years, the monthly mortgage payment would be $6,954, for an Annual Debt Service of $83,448 (this is the annual mortgage payment).

The final cash flow on this building was $297 and the ROI (return on investment) was 0.08%.

Central 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%.

• New or Smaller Real Estate Investors
• Mid-Sized Investors
• Experienced Real Estate Investors whose relationships with traditional banks no longer works due to the tightening of lending policy.
• New and or Experienced Investors Seeking Commercial Financing Under 2M

The Investment Property Financing Challenge

Securing financing for investment properties is more difficult than financing a home you intend to live in. There is a "risk stigma" associated with investment properties from the lender's perspective, making it increasingly challenging for many people to obtain the financing they are looking for.

All lenders are risk-averse, but some more so than others. Each lender creates internal lending policies designed to facilitate the type of business they are looking for and that steer them clear of the business they prefer not to do. The takeaway here is that some lenders do better with rental properties than others. What is deemed to be a concern for Lender A may not be for Lender B.

For self-employed individuals or those with complex financial profiles, a mortgage underwriting process can become very complicated. Without an experienced investment property specialist putting together your application and approaching the right lender, it can be challenging to get an application approved. A typical "walk into the branch process" that many rely on often becomes a frustrating experience that frequently leads nowhere.

Search all Investment Properties in Ottawa

Why Banks Often Fall Short with Investment Properties

The reality is that most banks are not particularly interested in this type of business at this time. While investment properties come with rental income to offset expenses, lenders will always consider whether the applicant can cover the expenses independent of that income. The lender always focuses on worst-case scenarios, considering whether it is likely to be paid if, for some reason, a unit remains vacant or the tenant fails to pay their rent.

When there are multiple rental properties in the mix, the mortgage application can become even less appealing to the bank. An applicant who is relying on thousands of dollars in rental income each month to cover the expenses of multiple properties is not something that makes the bank comfortable.

A wide variance always exists between the applicant's level of comfort with a financing request and the bank's. What may seem like a good business decision for an applicant does not necessarily translate the same way at the bank.

Given that the bank doesn't want "that many" investment properties on its books

• Branch staff are typically not trained to handle investment property applications effectively, and credit policies intentionally tie their hands.
• The staff that can process these applications are few and far between and are often at full capacity, unable to take on new files.

Without getting into the weeds, both lending policy and regulatory guidelines are intentionally structured in a way that investment properties do not perform well on paper, even though they may do so in reality. This creates a buffer to protect the lender from taking on too much risk.

What this often translates to is that the more properties a real estate investor owns, the more challenging it becomes for them to fit into the bank's box.

Equally important to note is that staff motivation levels to obtain approval for this type of financing at the branch are not always high. The typical compensation model for a bank employee is designed to reward them for selling products and services that are the most profitable to their employer, which makes sense when you think about it. These typically include investments, bank accounts, and insurance.

The Best Path to Investment Property Mortgage Approval

Success starts with the right mortgage professional who understands the business, has experience, and has access to a multitude of lenders, allowing them to select the one that is best suited for the application they are working on. They are willing to invest the necessary time in collecting, reviewing, questioning, and ultimately assembling all the required information and documents so that they can be presented to the lender in accordance with their respective submission guidelines.

Always avoid rushing and jumping the gun by making offers on properties or proceeding with projects without investing the time to go through a thorough application process upfront. If you do, you may get into a position where you commit to purchase a property that either cannot be financed or the terms of financing you can get are vastly different from what you were expecting.

Regardless of what many believe, a mortgage committment letter (which always includes financing conditions) that cannot be satisfied is not worth the paper it's printed on. All committment letters include financing conditions that must be satisfied to the lender's satisfaction before the lender agrees to fund. It's therefore essential that the application process is done correctly by the person you are working with and that they have your best interests ahead of their own.

Final Thoughts

If you fall within this underserved segment of the market, then you will likely find us to be a good fit to work with.

We are motivated to work with all types of clients and loan sizes and enjoy strong relationships with prime, subprime, and private lending options. We also facilitate CMHC multi-unit residential financing.

There is never any pressure to do anything, as we are solely focused on helping you and building a relationship, as opposed to completing a transaction. Conversations with us are relaxed, friendly, and respectful. You won't be inundated with follow-ups from us if you're not ready to move forward, but we'll be here when you are.

Article from:  Alan Gilman - Mortgage Broker

Phone: 613.552.1572
Email: alan@canadianmortgageproducts.ca

DLC Neighbourhood Lending Source # 11764 Independently Owned and Operated
424 Catherine Street, Suite 1, Ottawa Ontario

If you have a tenant and you want them to move out, which form should you use? That would be the N11 form.

If you have a tenant, and you want them to move out, or, if they want to move out in the middle of a lease, how do you go about it? This can be done legally if both parties agree.

There will be some negotiating regarding some terms, but once you agree and both sign the Form N11 that is it done.

We recently had a landlord who had two tenants who just could not get along and they were always arguing.  The landlord decided to offer one tenant 2 months rent to move out, which they agreed to.

This landlord then advertized for a new tenant and raised the rent and this situation was resolved in a good manner.

The City of Ottawa is welcoming Intensification and now allows for Secondary Dwelling Units to be added to pretty much anyone's home who wants One....if you can meet some conditions you can have an Inlaw Suite in your existing home.

Adding an Apartment or In-Law Suite to Your House ?

So long as your new apartment meets building and fire codes, you can now earn some extra money from your current primary residence.

If you want some extra income, why not add a basement apartment with 2 bedrooms and start collecting over $1000 per month ?

View all Real Estate Listings with an SDU, or the potential to have one.

Homes with a Secondary Dwelling Unit

How much does it cost to construct an SDU and Coach House?

Here are the typical building costs for a secondary dwelling unit or coach house.

• $125,000 for a basement, 2 bed, 1 bath.
• $150,000 for a basement 3 bed, 2 bath.
• Coachhouses cost from $225,000 to $250,000.

What does the City think about adding an In-Law Suite to your home?

Right now, pretty much anyone can add what's called a Secondary Dwelling Unit to their current property. This means you can add an Apartment to your current single family home or townhome to turn it into a Duplex, or you can add a third apartment to your Duplex to make it a Triplex.

The only area that is exempt from these new exemptions is Rockcliffe....no idea why ?

If you wanted to add an extra apartment to the 2nd level or 3rd level of your house, you are allowed to use 60% of the current space. But, if you wanted to add the extra space in the basement, you can use the full 100% of the space.

The City is also ignoring the current rules for building a Duplex or Triplex, forget about them, like a certain frontage, depth of lot or parking spaces.

Again, the City wants intensification, so they are saying...forget about that...all you have to do is to make sure your new apartment meets the fire and building codes.

So, you need to make sure that you build the new space with drywall that has the correct burn time between each unit.

Bottom line, it is now easier to create an Income Producing Property within your own home to help with your mortgage, make you some income, or even have your parents live in this space within your home.

Recent update about adding a Coach-House on your property.

There is another recent new change, allowing you to build a totally separate structure on your property, which is classed as a Coach-House, and you can do this as long as your lot size is big enough to meet the setbacks.

Again, the City of Ottawa is open to Intensification. Take advantage while this offer lasts and have your Inlaw-Suite separate from your own house.

This blog post and video are related to an older post about this Topic, concerning Illegal Apartments.

For more information about this you can visit the City of Ottawa's website and check out Secondary Dwellings and Coach-Houses.

And here is more information about Secondary Dwelling Units from the City of Ottawa

When it is a Duplex with an Illegal 3rd Unit.  We see these buildings throughout the city of Ottawa. Some landlord owners of a duplexed property will take it upon themselves to build a third apartment, usually in the basement.

I’ve seen these places that clearly do not meet building code; ie. Stair cases too narrow or ceilings too low.

Many illegal triplex buildings fail to meet fire code as well; ie.

• Windows of insufficient size to provide a second means of egress
• or they have those acoustic panel drop ceilings instead of 5/8 of an inch thick drywall.
  

Some of these places will never be legal triplex buildings.

• The zoning may not allow it.
• The lot may not have the required minimum square footage.
• There may not be enough parking.

So if you’re a landlord, I guess you’re out of luck and will never have that extra third unit to generate an additional $1,000 per month rent!  Right?  Wrong!

The City of Ottawa has a program in which almost any single family home is permitted to build a legal apartment termed a Secondary Dwelling Unit

This program applies to duplex properties as well, to be allowed to legally add a third unit. So maybe you don’t have zoning, size or parking, but you can still build that extra apartment. For more detailed information, go to the City of Ottawa web site and enter the search term Secondary Dwelling Unit.

A statement from that site is below:

A secondary dwelling unit is permitted in any detached, linked-detached, semi-detached or duplex dwelling, in any zone where that dwelling type is a listed permitted use provided.

Just make sure that you obtain the necessary permits because that additional apartment does need to meet building and fire code. 

So if you comply with that, you will have that extra revenue source as well as increasing the value of your building.

Should I buy Real Estate or Invest in the Stock Market.  

Watch the video which gives the upside as well as the downside of buying stocks or real estate.

Use the time stamps on the video to fast forward to the part you want.

Property Ownership Pros

1. Sale of a principal residence is not taxed when selling.

2. Purchased on margin. - You don’t pay 100% of the value of the property. $600,000 house increases in value by 10% = $660,000. But if you had a down payment of 10% = $60,000, you have doubled your investment.

3. Create equity as every mortgage payment pays down the principal.

4. Create equity as the market increases.

5. Forced savings. - Many people are incapable of saving money. Spend on restaurants, trips, toys.

6. Unlimited ability to buy any type of property for any purpose.

7. Borrow against equity at a preferred rate with a HELOC. - Banks will lend you money at a lower rate because the loan is secured by the property. There is less risk to the bank.

8. Generate income even in principal residence with an SDU, Air B&B, or lodger.

9. Most catastrophic events are covered by insurance, Ie. Fire.

Property Ownership Cons

1. Annual property tax and / or monthly condo fees. - $5,000 annual property tax = $55,000 to $60,000 after 10 years. Lost money that could have been invested in equities and earned $70 or $80 thousand instead of losing $60,000.

2. One-time upfront buying closing costs about 1.75%. - land transfer taxes, legal fees, Title Insurance. - $600,000 house x 1.75% = $10,500.

3. Paying interest on a large sum of money in monthly mortgage payments. - Payment $3,455 with 10% down payment, $2,663 Interest only $788 is principal.

4. Real estate commission fees when selling, 4% to 5%.

5. Annual maintenance costs. - Ie. Broken window, replace stained bedroom carpet.

6. Intermittent infrastructure costs. - Furnace 15 to 20 years about $5,000. Shingles 15 to 20 years about $10,000 +

7. Renovate / remodel costs. - Minor Ie. Bathroom vanity, sink, faucet or painting. Want to do vs need to do like maintenance.

8. Annual landscaping. - Even inexpensively. Ie. I spend $200 - $250 buying flowers, planters, mulch. $2,500 after 10 years.

9. Annual snow removal. - $425 about $5,000 after 10 years.

10. Not liquid, can take months to sell and get your cash. Prep house for sale 30 days, listed for 30 days to sell, buyer takes possession in 60 days = 4 months before get cash.

11. It’s not diversified, if the market goes down your price likely goes down.

12. Pay Capital Gains tax of 50% when selling an investment property.

Financial Market Investments Pros

1. No annual maintenance / reno costs.

2. Minimal or no cost to purchase.

3. Pays you interest / dividends monthly or quarterly.

4. Mitigate paying taxes now or in the future. • TFSA pay no taxes when withdraw. - Buy $88,000 since inception 2009 and it’s now $200,000 and you withdraw, there are NO taxes to be paid on that $200,000. • RRSP reduce taxes when buying.

5. Liquid asset, buy or sell withing minutes. - Either with your advisor or yourself online with a program called Questrade.

6. Buy and forget, occasional rebalancing. - don’t have to do frequent maintenance. May change percentage of stocks to bonds or buy GIC’s if warranted.

7. Risk diversification. Buy different asset classes Ie. Tech or REITS, stocks or bonds. - Stocks and bonds work in opposition to each other, so if you own both you can mitigate losses when markets decline. Buyer “blue chip” stocks like Apple or P&G.

Financial Market Investments Cons

1. Pay taxes if not sheltered in a Registered account.

2. TFSA low annual maximum limits. ($7,000 in 2024) -If you have cash to buy more, you can’t do so.

3. RRSP limited by one’s income.

4. ETF’s and Mutual Funds can have annual fees called MER and broker load fees. - 1/4% to 3%.

5. Many people don’t know what to invest in or when to invest. Warren Buffet said buy what mimics the S&P 500 when you have the money.

6. Risks, markets correct, recessions happen, possible to lose substantial equity quickly. political events, currency fluctuations, regulatory, etc. - Many find this stressful and sell when markets go into decline.

7. Catastrophic events typically not covered Ie. Nortel, Sam Bankman Fried of FTX, a cryptocurrency exchange. - Generally your cash is gone for good. No so with a house or even if it burns down there is still land value.

If you have decided that you want to invest in Stocks, talk to a financial advisor who specializes in them, and if you want to invest in real estate in the Ottawa area, start here, check out current listings of Income Properties.

Multifamily Homes for Sale across Ottawa

Are you an Investor living in Toronto and can’t make money due to the High Prices for Real Estate in the GTA?  There are alternatives to Investing in Toronto, give Ottawa a look!

We have extremely stable employment due to the federal government being the largest single employer in the region. Plus our booming hi tech industry is another major driver of the economy resulting in very high personal incomes.

Plane, Train or Automoble, it's just 1-5 hours away

Ottawa is just 400 km east of Toronto. The average home price in Ottawa is just $430,000, which is much more affordable for Investment Properties. Ottawa is a good investment versus Toronto, with a higher ROI, or Return on Your Investment.

You can buy more houses in Ottawa

Investors can purchase almost 2 houses in Ottawa to rent out, versus just One in Toronto & the GTA. Economy of scale dilutes risk. (more properties and more renters, in case of vacancy or midnight moves)

Currently a home in Ottawa will cost you slightly over $430,000, while in Toronto it's almost $750,000. This is based on all house types.

Lot's of property types for Investors to pick

There are a bunch of options in Ottawa to suit any budget, from Condos, Townhomes, Single Family Homes or even Multi-Unit Residential buildings.

Ottawa as an Alternative to investing in GTA real estate.

If you are an Investor and think that Toronto real estate is far too expensive for investing, come and see why Ottawa is your best option.

You can call Patrick Walchuk at 613-788-2590 to chat about investing in Ottawa.

Questions Pat will likely ask are;

1. Do you prefer to invest in a condo or single family home.

2. Are you interested in investing in a multi unit residential property.

3. How soon are you prepared to visit Ottawa to look at investments.

4. Do you have a 35% down payment to obtain a positive cash flow, based on Ottawa’s lower prices.

5. Do you know the city of Ottawa A) Well B) a little C) not at all.