Personal Finance

Good deal /investment for triplex

  • Last Updated:
  • Jul 4th, 2015 5:25 pm
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[OP]
Member
Dec 9, 2007
306 posts
63 upvotes
Montreal

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
Deal Addict
User avatar
Jan 13, 2012
1121 posts
50 upvotes
Sudbury
Number of bedrooms and units, location, and features are all more important factors than an arbitrary multiplier.
[OP]
Member
Dec 9, 2007
306 posts
63 upvotes
Montreal
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...
Deal Guru
User avatar
Mar 1, 2004
12861 posts
1484 upvotes
Pickering
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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