Good deal /investment for triplex

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Jul 4th, 2015 5:25 pm

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Jul 3rd, 2015 6:30 pm

tbtaoufiq [OP]: Member; Dec 9, 2007; 306 posts; 63 upvotes; Montreal

Jul 3rd, 2015 6:30 pm

Good deal /investment for triplex

Hi
I m looking to buy a triplex in montreal as a rental property. The triplex is brand new, gross income is 42k a year.
I heard a way to calculate the fair value by multiplying the gross income by a number like 15 times, or 20 times...
Do you guys know what the right multiplier?
Thanks

3 replies

Jul 4th, 2015 1:27 pm

fuelmizercowboy: Deal Addict; Jan 13, 2012; 1121 posts; 50 upvotes; Sudbury

Jul 4th, 2015 1:27 pm

Number of bedrooms and units, location, and features are all more important factors than an arbitrary multiplier.

Jul 4th, 2015 5:07 pm

tbtaoufiq [OP]: Member; Dec 9, 2007; 306 posts; 63 upvotes; Montreal

Jul 4th, 2015 5:07 pm

This factors are all considered in the rent. Once you have the income, how do you know the fair market value of the building. It s not just a random multiplier, it s a scientific number...

Jul 4th, 2015 5:25 pm

AudiDude: Deal Guru; Mar 1, 2004; 12861 posts; 1484 upvotes; Pickering

Jul 4th, 2015 5:25 pm

How much money do I have left over after I service all debt, taxes, utilities if they are included and maintenance?

I don't use magical numbers. You should have a goal with an acceptable ROR. If it doesn't work, you don't buy.

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