Did I pay too much? Template needed.

[Michael Sifontes]

Hello guys, So I was wondering if any of you can share any templates or rules of thumb you have when deciding if a property is worth the investment. For example, I recently purchased a 5-plex (3-1 bed and 2-Bach) in London Ontario (1.3% vacancy)for 340,000$ I estimate 40,000$ needed to bring the building to tip top shape. I can get around 42,000$ per year in rental income once I renovate. Annual expenses will be about 6500$ total. So my question is..... did I pay too much for this building? From my numbers I cash flow about 20,000$ a year pre-tax. Is there a formula you have that can let me know how much I should pay for a property based of the historic numbers? Secondly I was also thinking to turn the basement into 2 more bachelor units. How hard will it be for me to get the property rezoned? Can I apply before I am the actual owner? Any help will be greatly appreciated. My initial investment for this will be about 76,000$