Plex or multi-unit purchase
Rents, expenses and building condition.
Plex and multi-unit
Purchase, renovate or refinance a plex or multi-unit property.
Book a callActual rents matter more than asking rents.
The partner broker calculates net income and documents occupancy before presenting the request.
Book a callProject types
Renovations in an occupied building
Budget, affected units and temporary loss of rent.
Refinancing after renovations
Updated value and income after renovations.
Multi-unit conversion
Zoning, permits, budget and planned units.
Portfolio acquisition
Each property reviewed separately, then the portfolio.
What lenders review
Current rents
The lender reviews rents, leases and payment history.
Operating expenses
Taxes, insurance, utilities, maintenance and management determine net income.
Occupancy
Vacancy, available units and turnover influence the income accepted.
Planned renovations
The budget, schedule and affected units must be clearly presented.
What gives a lender pause
Rents difficult to confirm
Leases, payment history and comparable rents must support stated income.
Understated expenses
Maintenance, utilities, insurance and management costs reduce net income.
Vacancy during renovations
The budget must cover lost rent and expected leasing time.
Non-compliant property
Use, unit count and safety must match municipal records.
What sets the terms
Amount
Value and net income both limit the amount.
Down payment
Occupancy, building condition and renovations influence the required amount.
Amortization
A longer period lowers payments but increases total interest.
Renovations
The lender decides based on the budget, value and schedule.
Request steps
- Define the project and requested amount
- Review rents and expenses
- Calculate net income
- Document the building condition and renovations
- Present the request to selected lenders
- Compare the offers received
What to prepare
- Current rent roll and available leases
- Income and expense history
- Taxes, insurance and utility costs
- Purchase offer or current loan statements
- Borrower financial documents
- Inspection, renovation budget and permits
Loan types
| Loan type | When this loan type may apply |
|---|---|
| Conventional loan | For a stable property with documented income, expenses and occupancy. |
| Insured financing | For a project eligible under the lender’s selected program. |
| Temporary renovation loan | To purchase, renovate, lease and then refinance using the new income. |
| Second mortgage | An additional loan behind the first, when value and income allow it. |
Preparing a request, step by step
All guides
Buying a first plex: the steps
Budget, down payment, rental income and property visits.
Multi-unit refinancing: required documents
Rents, expenses, current debt and use of funds.
Stated rents and actual rents
Gaps between the seller’s rent roll and signed leases.
Five units and up: CMHC or conventional
Two financing paths, two sets of terms and timelines.
Improving a building before refinancing
Work, rents, expenses and documents to prepare ahead.
Operating expenses: what counts
Taxes, insurance, energy, maintenance, management and reserve.
Common questions
Will the lender use projected rents?+
Sometimes. The lender requires comparable rents, a budget and a leasing timeline.
Can renovations be financed?+
Yes, depending on the budget, schedule, value and available cash.
How are vacant units treated?+
The lender reviews potential rent, required renovations and expected leasing time.
When can the property be refinanced?+
When rents, occupancy and expenses are sufficiently documented.
How does the lender calculate expenses?+
The lender checks current taxes, insurance, utilities, maintenance and management costs.
Can vacant units be considered?+
Yes, with comparable rents, a renovation budget and realistic leasing time.
Book a call about your plex or multi-unit property.
Price, rents, expenses, renovations and target date.
Book a call