Units & Pricing
Financing
Rents & Revenue
Opex & Assumptions
Tax & Rebates
Money In (Total Committed)
Asset Value at Exit
Money Out (Net Proceeds)
Total Return / Ann. ROI
Investment Highlights
Upfront Fees Breakdown
| Down Payment (Equity) | $0 |
| Legal & Closing | $0 |
| Ontario Land Transfer Tax | $0 |
| CMHC Insurance Premium | $0 |
| Appraisal / Inspection | $0 |
| Phase 1 ESA | $3,500 |
| Mortgage Broker Fee | $0 |
| HST Rebate (PBRH + NRRPR) | Fully Rebated ✓ |
| Total Capital Required | $0 |
Financial Summary
| Total Acquisition Price | $0 |
| Gross Rental Income | $0 / yr |
| Additional Revenue (Pet Fees) | $0 / yr |
| Less: Vacancy Allowance | −$0 |
| Effective Gross Income | $0 / yr |
| Total Operating Expenses | −$0 / yr |
| Net Operating Income (NOI) | $0 / yr |
| Annual Mortgage Payment | −$0 / yr |
| Net Cash Flow | $0 / yr |
| Cap Rate | 0% |
| Debt Service Coverage Ratio | N/A |
5-Year Projection
| Year | Property Value | Total Equity | Annual Rent | NOI | Cash Flow | Cumulative Return |
|---|
Year-5 Exit Analysis Sale of Portfolio
| Sale Proceeds | |
| Appreciated Property Value | $0 |
| Less: Selling Costs (4%) | −$0 |
| Less: Remaining Mortgage | −$0 |
| Net Sale Proceeds | $0 |
| Total 5-Year Return | |
| Capital Gain (Net Proceeds − Capital In) | $0 |
| Cumulative Cash Flow (5 yrs) | $0 |
| Total Profit | $0 |
| Total Return on Capital | 0% |
| Annualized Return | 0% |
| 5-Year IRR (Pre-Tax) | 0% |
| Equity Multiple | 0.00x |
Side-by-Side Financing Comparison
| Metric | All Cash | Traditional | CMHC Standard | MLI Select (T3) |
|---|---|---|---|---|
| Capital Injection (Down + Fees) | $0 | $0 | $0 | $0 |
| Equity (Down Payment) | $0 | $0 | $0 | $0 |
| Mortgage Amount | $0 | $0 | $0 | $0 |
| LTV / Amort / Rate | 100% / N/A / 0.0% | 75% / 25 yrs / 4.0% | 85% / 40 yrs / 4.0% | 95% / 50 yrs / 4.0% |
| Net Cash Flow (Annual) | $0 / yr | $0 / yr | $0 / yr | $0 / yr |
| Net Cash Flow (Monthly) | $0 / mo | $0 / mo | $0 / mo | $0 / mo |
| Cash-on-Cash Return | 0.0% | 0.0% | 0.0% | 0.0% |
| Year-5 Total Profit (Exit) | $0 | $0 | $0 | $0 |
| 5-Year IRR (Pre-Tax) | 0% | 0% | 0% | 0% |
| Equity Multiple | 0.00x | 0.00x | 0.00x | 0.00x |
Rent Sensitivity Analysis Net Annual Cashflow by Rent Level × Financing
| 2-Bed Rent | All Cash | Traditional | CMHC Std | MLI Select (T3) |
|---|
Outstanding Assumptions (Require Validation)
| Category | Current Assumption | Status / Action Required |
|---|---|---|
| Property Taxes | 1.2% of Acq. Price | Pending: Need municipal tax rate estimate for new build. |
| Insurance | $1,590 / unit / yr | Pending: Request preliminary quote from broker. |
| Property Mgmt | 4.0% of EGI | Pending: Confirm fee structure with local PM firm. |
| CMHC Affordable Rents | $1,215/mo cap | Pending: Verify affordable rent threshold for this specific municipality. |
| Construction Timeline | Blocks TBD | Pending: Confirm exact start date to guarantee Enhanced HST Rebate eligibility. |
Glossary & Calculations
Cash Outflow (Year 0): Fully loaded with equity, land transfer tax, legal fees, CMHC premiums, and broker/appraisal fees (so it's a true "Net of Fees" outlay).
Cash Inflows (Years 1–4): Net Operating Income minus Mortgage Payments (Pre-tax cash flow).
Exit (Year 5): Cash flow for Year 5 + Property Value minus remaining mortgage balance and minus 4% selling/broker fees. (No capital gains tax is deducted, hence Pre-Tax).
Leverage: Because it factors in the mortgage payments and debt paydown, it's a "Levered" IRR (except in the All-Cash scenario, where it is inherently Unlevered).
Equity Multiple (EM): Total Cash Distributions (Operating Cash Flows + Net Exit Proceeds) divided by Total Capital Invested. An EM of 1.75x means you recovered your original equity plus a 75% profit.
Net Operating Income (NOI): Total Effective Gross Income minus all operating expenses. Used directly to determine the property's valuation and debt capacity.
Effective Gross Income (EGI): Total potential rental income plus other income (like pet fees) minus an allowance for expected vacancy and credit loss.
Capitalization Rate (Cap Rate): The unlevered rate of return on an investment property. Calculated as NOI divided by the Net Acquisition Price.
Cash-on-Cash Return (CoC): Measures the annual cash income earned on the actual cash invested. Calculated as Net Cash Flow divided by Total Capital Required.
Enhanced PBRH & NRRPR: Purpose-Built Rental Housing (Federal) and New Residential Rental Property Rebate (Ontario). Provides a full 100% rebate on the 13% HST for qualifying multi-unit projects whose construction begins after Sept 2023.
CMHC MLI Select: A multi-unit mortgage loan insurance product focused on affordability, accessibility, and climate compatibility, offering favorable terms like higher LTVs, lower premiums, and extended 50-year amortizations.
Economies of Scale: Several assumptions dynamically scale down as the number of units increases to reflect portfolio-level pricing:
- Volume Pricing: Per-unit acquisition cost of $425K (1–3 blocks), $420K (4–6 blocks), and $425K (7+ blocks / full site).
- Legal & Closing: Scales from 1.5% (1 block) down to a floor of 0.5% (5+ blocks).
- Appraisal & Inspection: Blends a $2,500 base report fee plus a $150/unit variable fee.
- Mortgage Broker Fee: Tiers downwards (1.0% on first $5M, 0.75% on next $5M, 0.5% over $10M).
- Property Management: Drops from 4.0% (1-2 blocks) down to 2.5% (7+ blocks).
Heat Pump vs Gas & CMHC Climate Standard (≥70% vs NBC 2020): Cold Creek units are engineered to achieve ≥70% reduction in energy consumption & GHG emissions compared to the National Building Code (NBC 2020) reference building, earning the maximum 50 Climate Compatibility points under CMHC MLI Select. This is achieved via high-COP cold-climate heat pumps (electric backup, zero gas connection), continuous thermal envelope insulation, and triple-pane glazing. Compared to gas-heated comparables (e.g., Talbot on the Trail, Picton), tenants save an estimated $80–$150/mo in total utility costs (no monthly gas delivery charges and 40–60% lower space-heating energy use).
Tenant-Pays-All-Utilities: In the back-to-back townhome format, each unit is fully self-contained with no common areas, lobbies, or shared corridors. All utilities (electric, water, sewer) are individually metered and paid by the tenant. The landlord has zero utility exposure during occupancy. The $0 utility default reflects this structure.
DSCR (Debt Service Coverage Ratio): Net Operating Income divided by Annual Debt Service (mortgage payments). CMHC requires a minimum of 1.10x for MLI Select — meaning NOI must exceed mortgage payments by at least 10%. A DSCR below 1.0x means the property cannot cover its debt service from operating income alone.
Prince Edward County Municipal Housing Policy: Under s. 110 of the Ontario Municipal Act, Prince Edward County Council grants full municipal property tax waivers on purpose-built affordable housing units through a Municipal Capital Facilities Agreement. Furthermore, under County By-Law 4019-2017 Part 4, qualifying affordable housing developments receive an immediate 30% post-occupancy rebate on municipal water and sanitary sewer connection charges. (Note: PEC does not operate an active CIP or TIEG program; all municipal incentives operate through the housing department's s. 110 agreements and By-Law 4019-2017).
MLI Select Affordability: CMHC's MLI Select program awards points for affordability commitments. A minimum of 10% of units must be rented at or below 80% of median market rent to qualify for the affordability premium reduction. Higher affordability commitments earn more points, unlocking better LTV, amortization, and premium tiers.
