Buying a first plex: the steps

Before visiting

Set the amount you can pay. It depends on your equity and the rents.

During the visit

• Ask for the rent roll signed by the seller
• Note the age of roof, windows and heating
• Check that each unit has a written lease
• Review expenses for the last two years

After the offer is accepted

The lender orders an appraisal. Allow two to four weeks for the final answer.

The math before the search

Add up annual rents. Subtract expenses. Compare to the payment on the loan you plan.

If the gap is thin, a single vacancy creates a shortfall.

Living in the building or not

A lower down payment applies to an owner-occupier.

A fully rented building follows investment rules, which are stricter.

Traps on a first purchase

• A below-market rent, hard to raise
• A unit occupied by the seller, to be vacated
• Work deferred for years
• Insurance refused because of old wiring

After the purchase

Note the end date of each lease in the first week.

Increase notices follow a strict schedule set by law.

A notice sent late pushes the increase back a full year.