This is for educational purposes only; it does not guarantee future performance or serve as financial or tax advice.
Thinking about investing in Toronto real estate? Multiplexes are likely on your radar, but which strategy makes the most sense? Should you go turnkey, convert a triplex, add a backyard ADU, or go all-in with a 4+1 build?
Let’s break down the options and what’s been working for our clients, so you can make the best call for your situation.
Turnkey Multiplex: The Hands-Off Approach
If you want to keep things simple and avoid renovations, a turnkey property is your best bet. These are fully rented properties that cash flow from day one.
Right now, you can pick up a triplex for around $1.2M in today’s market. With 20% down, closing costs, and other expenses, you’re looking at roughly $300K upfront. In return, you get solid, positive cash flow without the hassle of construction.
If your budget is closer to $1M, you can still find turnkey duplexes. These won’t cash flow as strongly—likely closer to break-even—but they offer a low-maintenance, stress-free investment.
The main downside to turnkey properties? Since you’re paying for someone else’s work, you’re not getting forced appreciation—most of your returns will come from long-term market growth.

Triplex Conversion: A Smart Value-Add Strategy

If you’re looking to boost returns, converting a house into a triplex is a great move. One of our clients recently picked up a semi for $1.1M, spent $60K on renovations, and saw the property’s value jump to $1.25M. That’s a $100K gain, plus solid cash flow.
On top of that, once the units are rented, they refinanced and pulled out $140K—enough to fund the next step: building an accessory dwelling unit (ADU) – basically a laneway or garden suite in the backyard. Adding an ADU further increases value and cash flow, making this a scalable and high-ROI strategy.


What About 4+1s? Bigger Doesn’t Always Mean Better

Lately, 4+1 conversions (turning the main house into a fourplex and adding an ADU) have been gaining traction. Once you hit five units, you qualify for commercial financing, which has its pros and cons.
Pros:
- More predictable refinancing projections – property value is based on rental income rather than market comparables.
- Doesn’t affect personal credit – since commercial mortgages don’t show up on your personal credit report.
- Better for scaling – easier to qualify for financing based on rental income.
Cons:
- Harder to finance construction – you’ll need cash or alternative financing to complete the project.
- Uncertain CMHC refinancing terms – there’s debate over whether you can refinance based on total costs or completion value.
If you’re looking to scale quickly and can handle higher upfront costs, this strategy could be for you. But for most investors, the triplex + ADU strategy remains the sweet spot.

Triplex financed based on 20% downpayment, 30Y Amortization, 4% interest rate. ADU construction with 3+1 funded with cash and refinanced funds on triplex completion. 4+1 refinanced based on 80% LTV, 30Y Amortization, 4% interest rate. 4+1 financed based on 20% downpayment, 30Y Amortization, 4% interest rate and cash for construction. 4+1 refinanced based on 95% LTC at a cap rate of 4.25%, 40Y Amortization, 4% interest rate.
Trends for 2025: Why We’re Doubling Down on Cash Flow & Value-Add
You’ve probably noticed that our investment strategies have been shifting even more toward cash flow and value-add projects—and for good reason.
The economy is weak, trade tensions are rising, and interest rates are unpredictable. BMO initially expected just two rate cuts in 2025, but now they’re forecasting six—a total drop of 150 basis points. While lower rates might seem like a win for real estate, the reality is more complicated. A weaker dollar, job losses, and softer rental demand could create even bigger challenges.
So instead of betting on price growth, we’re focusing on the fundamentals—strong rental income, positive cash flow, and a better balance of rental income & appreciation for steady, reliable returns.
How We Can Help
There’s no one-size-fits-all in real estate. It’s about finding what works for your goals, budget, and risk tolerance. Whether you’re looking for a turnkey property or ready to take on a conversion project, there’s an option that suits you.
At Elevate Realty, we’re here to help. Our team of seasoned investors specializes in multiplexes and value-add projects in Toronto, and we’ve got the experience to guide you every step of the way. From finding the right investment to helping with renovations, property management, and everything in between, we’ve got you covered.
If you’re ready to dive into the world of Toronto multiplexes, let’s chat!
Here’s what it’s like to start as a client with us:
- Initial Consultation: We’ll talk with you to understand your needs and teach you how to invest wisely in Toronto real estate.
- Market Search & Purchase: We’ll search the market to find the perfect property for you.
- Renovation Support: If the property needs renovations, our trusted contractors are ready to help, and we’ll coach you as you manage the project.
- 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?
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