Multiplex homes are becoming one of the top ways to build wealth in Toronto. Whether you’re after a ready-to-go investment, a renovation conversion project, or a new multiplex build, we’ve broken down everything you need to know to get started.
What Are Your Options?
Here’s a quick look at the 3 main investment types:
Turnkey Multiplex
Purchase Price: $1,000,000+
We find high-return properties tailored to your goals, whether for cash flow, appreciation, or both.
Ease of Entry
Ease of Effort
Cash Flow
Value-Add Lift
Multiplex Conversion
Purchase Price: $900,000+
We target conversions with strong lift and cash flow potential while keeping costs low.
Ease of Entry
Ease of Effort
Cash Flow
Value-Add Lift
Multiplex Build
Purchase Price: $800,000+
From 4 to 60-unit builds, we identify properties with the highest potential for your goals.
Ease of Entry
Ease of Effort
Cash Flow
Value-Add Lift
Turnkey Multiplex: Start Earning from Day One
- What It Is: A turnkey property is fully renovated and ready to generate cash flow immediately.
- Why It’s Great: You get steady, reliable income with minimal effort. It’s the perfect option if you want a hands-off investment.
- The Trade-off: You won’t see huge returns from value increases since the property is already fixed up. But you get consistent, low-maintenance income.
Multiplex Conversion: Unlock Hidden Value
- What It Is: These properties need some work but can be bought for less. Once renovated with better finishes and more rental units, rents and property value can significantly increase.
- Why It’s Great: Upgrading a property lets you increase the property’s value and rent potential, giving you a higher potential return on your investment. After renovations, you may even refinance to pull out some of your initial capital.
- The Trade-off: Renovations require more upfront capital and effort. If you don’t have the expertise, it may be tougher to hit your projected returns.
Multiplex Build: Custom Investment with High Potential
- What It Is: Build a new multiplex property to your exact specifications.
- Why It’s Great: You have full control over design and layout, which allows you to maximize rental income and property value. If you build 5+ units, you can transition to commercial financing for better growth potential and scalability.
- The Trade-off: New builds require more time, risk, and capital to execute. You’ll need a high degree of construction experience in order to achieve projected returns.
How Much Capital Do You Need To Buy?
Downpayment
- Residential Properties (5 units or less): Typically a 20% down payment, but may be more depending on your personal borrowing capacity.
- Commercial Properties (5+ units): Generally requires a 35%+ down payment.
Insured Mortgages: If you qualify for a CMHC-insured mortgage, you may be able to get a lower down payment — as low as 5% for residential properties. This can be a game-changer for investors, especially if you’re looking to maximize your capital.
Closing Costs: Budget around 5% for land transfer taxes, legal and other fees.
Renovations: What To Expect
When planning your project, remember to budget for all renovation costs to ensure smooth progress.
Once renovations are complete, you may be able to refinance based on the property’s higher value—helping you recover some initial costs. This can free up cash for future projects or help reduce your loan.
Many investors cover renovation costs for smaller projects by using cash or a HELOC, then refinance once the upgrades are complete to free up capital.
Another option is construction financing, though it typically comes with higher interest rates and may involve additional steps, as funds are often released in stages. If eligible, a CMHC-insured construction mortgage can make financing easier for these projects.
Kitchen or Bathroom Remodel
$10,000+
1 month+
Adding A New Unit
$50,000+
3 months+
New Construction
$300+ per sq. ft.+
1 year+
Note: These estimates generally don’t include design, permits, or holding costs during construction.
Your Role as a Landlord: Managing Your Investment
Real estate investing isn’t entirely passive when you’re managing the property yourself. After your property is set up, you’ll need to find reliable tenants who respect your property and pay on time, while also dealing with ongoing maintenance and repairs.
Need help managing your properties? We offer professional leasing and property management services to handle tenant issues, maintenance, and more!
Which Investment Type is Right for You?
Want hands-off investment with rents and cash flow from day 1?
CHOOSE: Turnkey Multiplex
Steady rent income from day one + long-term appreciation.
Ready to increase value and rents with extra work?
Multiplex Conversion
Higher rents and cash flows, with potential for value-add on top of long-term appreciation.
Strong capital and construction experience for max returns?
Multiplex Build
Highest lift and rent potential with long-term appreciation if done correctly.
Ready To Invest In Toronto Real Estate?
Ready to dive into multiplex real estate investing? We’re here to help you find the right property and guide you through every step.