Toronto’s Turnkey Multiplexes Under $1M Are Now Cash Flowing POSITIVE!


Toronto’s never been known for its cash flows and can even go deep negative with condos and single-family homes. 

Our team has always turned to multiplexes for stronger positive cash flows, but historically, they’ve needed some serious TLC to make the numbers work.

But here’s the exciting part: with the market cooling off significantly this summer of 2024, even more than usual, you can now snag a turnkey 3-unit house in Toronto for around $1 million that can cash flow positive from day one. That’s unheard of! 

Curious why this is happening? Stay tuned.

The Struggle with Turnkey Properties

Typically, even turnkey triplexes in Toronto still struggle to cash flow. 

But if you snag a fixer-upper single-family home, you can score a massive discount—think 30% off compared to a turnkey multiplex, saving you around $400K on the purchase price. 

If it costs you $200K to do the conversion, you’re still $200K ahead, which is like getting a 15% discount off the turnkey price. This means you get a value-add lift and end up cash flowing better than a turnkey one.

Here’s the thing—projects need to be pretty substantial for the numbers to work. In the previous example, it was a $200K renovation! 

More investors can handle smaller renovations like redoing bathrooms and kitchens without tackling structural changes. The risk is lower, so you end up not getting as much lift, and cash flows still don’t look that great.

Current Toronto Real Estate Market Shifts

But right now, things are shifting. 

Recent Purchase 1: Triplex + Cosmetic Upgrades Cash Flows On Refinancing

A client bought a legal Toronto triplex for $1.2M. With $90,000 in cosmetic renovations, its value is expected to rise to $1.45M, creating a potential value-add gain of $160,000. Refinancing at 80% of the new value can unlock cash while maintaining strong cash flow.


Recent Purchase 2: Smaller Turnkey 3-Unit House Cash Flows On Day 1

There’s a house in Toronto on a smaller lot, but already split into 3 units with decent rental grade finishes. It was listed at $999,000 with no offer date and sold at asking price. Each floor has a unit, bringing in a total rent of around $6,000. After mortgage and operating expenses, it can still cash flow $670 positive a month!

Why Is This Happening?

This summer, we’re seeing a lot more inventory than usual but buyers can’t following suit, which is softening the market and prices. Typically, summers are weak for real estate, but this summer is exceptional. 

Better deals, less competition, and lowering interest rates lately mean better real estate returns. Think less work needed to get the value-add lift like the first example, or cash-flowing turnkey properties that can be rented out on day one.

How We Can Help

The numbers look way better than usual, so we don’t expect this window to last forever. Want to learn more about these opportunities before they close up? Just reach out! 

Our Toronto real estate brokerage specializes in buying and selling investment properties across the city, especially houses and multiplexes. Whether you’re eyeing turnkey multiplexes or considering converting single-family homes to multiplexes, we’ll guide you towards smart real estate investing in Toronto.

Here’s what it’s like to start as a client with us:

  1. Initial Consultation: We’ll talk with you to understand your needs and teach you how to invest wisely in Toronto real estate.
  2. Market Search: We’ll search the market to find the perfect property for you.
  3. Renovation Support: If the property needs renovations, our trusted contractors are ready to help, and we’ll support you through the whole process.
  4. Leasing and Management: If you need help renting out and managing your property, our leasing and management team is here for you.

Ready to get started? Click on the link below, and let’s start working together!

What Toronto Real Estate Investment Is Right For You?

Check out our complete Toronto real estate investment guide for all the details and real-life examples. If you’re ready to dive in, just book a call with us!