Investing: Multi-family
Multi-family investing in Calgary
Suited homes, fourplexes, 8-plexes and larger apartment buildings. More doors can mean more income, as long as the rents and the financing hold up.
Spotlight
Underwrite with today’s rents
Calgary has added a lot of new rental supply, and rents have come down from their peak.
That’s why I underwrite every multi-family deal, new or existing, at today’s rents, vacancy and costs. If it only works at peak rents, it doesn’t work.
Real rents
What similar units are actually leasing for today.
Real vacancy
Not best-case assumptions.
Real costs
Taxes, insurance, repairs and management.
Financing that fits
Residential or commercial, depending on the number of units.
From suited homes to apartment buildings
1 to 4 units: suited homes, duplexes and fourplexes use regular residential mortgages. They’re the simplest way to get more than one rent from one property.
5 units and up: from small apartment buildings to larger multi-family. Commercial financing is based on your net worth and the property’s debt service coverage ratio (DSCR), rather than qualifying personally, often with CMHC programs.
New-build 8-plexes: I’ve helped clients buy new-development 8-plexes. The key is checking the rents, the build quality and the financing before you commit.
Calgary’s zoning rules have changed in recent years, so I check what each lot allows before you buy.
A good fit if
- You want several rents from one property
- You’re comfortable with more tenants and more management
- You have more capital to work with for the down payment, capital reserves and repairs
- You’ll underwrite at today’s rents
Think twice if
- It only works at peak rents
- You’re stretching to the maximum financing with no buffer
- You want a hands-off investment
The process
How I help
Strategy
Your budget, your financing path and your goals.
Underwriting
Real rents, vacancy and costs for every property we look at.
Hand-selected properties
Existing buildings and new builds that fit your plan.
Offer and conditions
Financing, inspection, leases and rent rolls reviewed before you firm up.
Closing and beyond
Introductions to property managers, insurance brokers and trades.
Do I need commercial financing?
For five or more units, yes. Commercial financing is based on your net worth and the property’s debt service coverage ratio (DSCR), not on qualifying personally like a regular mortgage. One to four units use residential mortgages. A mortgage broker can walk you through both.
Can I build a fourplex on my lot?
It depends on the lot’s zoning, which has changed in Calgary recently. I check what each lot allows before you buy.
Is there rent control in Alberta?
No. There are rules on how often you can raise the rent and how much notice you give, but no cap on the amount.
Are 8-plexes still a good investment?
They can be, but underwrite very carefully. Rents have come down, so I run the numbers at today’s rents before anyone commits.
Services
More ways I can help
Let’s talk
Looking at a multi-family property? Let’s run the numbers.
Happy to jump on a call or a Zoom.
Book a call
Not financial, legal or tax advice.