Revenue optimization potential! Brick building with 7 residential units, entirely composed of 4½ apartments, located in the north end of Sherbrooke close to all essential services. The property has benefited from several major renovations over the past few years, including work to the roof, electrical system, storage units, and various building components. Carefully maintained property that has benefited from numerous upgrades over the years, an opportunity not to be missed!
Strong revenue growth potential.
Hot water is included at the owner’s expense, while all other services are paid by the tenants.
The roof was completely redone in 2023 following wind damage.
Mechanical room with 9 storage spaces.
Hot water tanks: 2024.
Ventilation: Cleaning of all building exhaust ducts was completed in July 2023.
Staircases and balconies: Reinforcement of guardrails and handrails, as well as welding repairs, were completed in October 2023.
The roof underwent a complete renovation in January 2023, including the installation of new roof decking, an elastomeric membrane, 4 inches of spray polyurethane insulation, and a rigid vapor barrier insulation system. The work also included the complete asbestos abatement of the roof and represented an investment of more than $132,000.
The heating system was converted from gas to electric. A new electrical service entrance was installed in 2023, along with new central electrical panels and new connection wiring. The electrical capacity was also increased to 400 amps + 9 separate 100-amp meters.
The 8 wooden storage units, as well as the storage space located beneath the front entrance staircase, were completely rebuilt in September 2023, at the same time as the ceiling wiring boxes were installed.
Unit #7: The bathroom was fully renovated (plumbing and finishes) in November 2023. The drainage piping was also upgraded as part of the renovation work completed in November 2023.
Fire-rated doors were added to the storage room area as well as to the electrical room.
The sale is made without legal warranty of quality, at the buyer’s own risk and peril.
Encroachments according to the certificate of location: Certain elements, including the asphalt, retaining walls, and the front walkway, partially encroach onto neighboring lots and the street right-of-way.
The building has been well maintained and managed rigorously.
Located approximately 2 km from CHUS.
| Cadastral number | 1 330 638 |
| Total Municipal Assessment | 716 400 $ |
| Municipal Land Assessment | 121 800 $ |
| Municipal Building Assessment | 594 600 $ |
| Number of Storeys | 3 |
| Type of Building | Detached |
| Type of Construction | Brick and wood |
| Year of Construction | 1968 |
| Fire System | Smoke detectors |
| Type of Parking | Asphalt exterior |
| Number of Parking Spaces | Approximately 7 to 8 spaces |
| Land Surface Area | 8,112 square feet |
| Laundry Room | No |
| Number of Rooms | 28 |
| Number of Units | 7 x 4.5 |
| Washer/Dryer Inlet | Yes, in each unit |
| Appliance Responsibility | Tenants |
| Heating Responsibility | Tenants |
| Hot Water Responsibility | Owner |
| Internet and Telecom | No |
| Plumbing | Copper, ABS |
| Condition of Roof | Elastomer membrane - replaced in 2023 |
| Condition of Doors | Updated in 2019 |
| Condition of Balconies | Large rear balconies, renovated |
| Concierge Agreement | No |
| Intercom and Doorbell | Non-functional |
| Heating System | Electric baseboards |
| Hot Water System | Gas water heaters (centralized in the basement) |
| Condition of Windows | Updated in 2019 |
| Condition of Kitchens | All 7 units are in good condition |
| Electrical Panels | Circuit breakers |
| Exterior Siding | Clay brick |
| Condition of Bathrooms | 6 in good condition, one renovated in 2023 |
| Environmental Report | 2020 |
| Floor Covering | Ceramic tile, linoleum, floating floors, vinyl |
| yearly | % / GR | RPU (m) | |
|---|---|---|---|
| Residential | $69,816 | 100 % | $831 |
| Affordable res. | |||
| Commercial | |||
| Lockers | |||
| Parking | |||
| Laundry | |||
| Total revenues | $69,816 | $831 | |
| Vac. / Bad debt | $2,094 | 3 % | $25 |
| EGR | $67,722 | $806 | |
| Calc. | yearly | % OF EGR | CPU (y) | |
|---|---|---|---|---|
| Administration | Normalised | $3,047 | 4.5 % | $435 |
| Municipal Taxes | Current | $9,142 | 13.5 % | $1,306 |
| School Taxes | Current | $487 | 0.7 % | $70 |
| Insurance | Current | $4,482 | 6.6 % | $640 |
| Electricity | Current | $614 | 0.9 % | $88 |
| Heating | Current | $2,616 | 3.9 % | $374 |
| Snow Removal | ||||
| Elevator | ||||
| Lawn | ||||
| Structural reserve | ||||
| Janitor | Normalised | $1,750 | 2.6 % | $250 |
| Maintenance | Normalised | $4,900 | 7.2 % | $700 |
| Appliances | ||||
| WiFi | ||||
| Heat pump | ||||
| CHMC: Other Costs | Normalised | $677 | 1 % | $97 |
| Total expenses | $27,716 | 40.9 % | $3,959 | |
| Net Revenue | $40,006 | $5,715 |
| schl | conv | |
|---|---|---|
| Maximum loan amount | $697,722 | $467,682 |
| Financing CAP | 4.87 % | 6.42 % |
| Debt coverage ratio | 1.1 | 1.25 |
| Interest Rate | 4.3 % | 4.8 % |
| Amortization | 40 Years | 25 Years |
| Term | 5 Years | 5 Years |
| schl | conv | |
|---|---|---|
| Net Revenue | $40,006 | $40,006 |
| Annual Mortgage Cost | $37,733 | $32,005 |
| Net cash after mortgage | $2,273 | $8,001 |
| RETURN ON INVESTMENT | ||
| Down Payment | $377,278 | $607,318 |
| Cash on cash return | 0.6 % | 1.3 % |
| Return on liquidity + capitalization | 2.5 % | 3.0 % |
| Return on liquidity + cap. + appreciation | 8.2 % | 6.5 % |
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