Top Current Toronto Multiplex Investment Opportunities
In this webinar, Blair Johnson and Jeff Somlo of Apollo Realty Group cover how Toronto multiplex investing works right now: the incentives, the financing, three example projects, and the buy box we use to find them.
Why Toronto multiplex investing works
Limited supply: there are only so many 25-foot lots in central Toronto, and big developers and institutions are not competing for them.
Family-sized rentals: new condos are built small, while multiplexes offer larger 3-bedroom homes that tenants stay in longer.
Government support: as-of-right zoning (a 4-plex province-wide, and a 6-plex across most of Toronto, plus an ADU), waived development charges, the HST new housing rebate, and accelerated depreciation.
Financing: CMHC MLI Select
Buildings with five or more units can access CMHC-backed commercial financing, with long amortizations and attractive rates. Construction loans can cover up to 95% of project cost, and qualification is based on net worth rather than income, so you can keep going from one property to the next. We underwrite conservatively, at a higher rate than today's. Terms change, so always confirm with a lender.
Fixed-Price Multiplex Construction in Toronto: Hawk's Safety Net
Once the detailed quote is agreed upon, as long as there are no client changes or major site-specific issues that arise, the quote is fixed. This is a major safety net and a key differentiator for building with Hawk.
Three example projects from the webinar
6-plex plus ADU: about $1.25M purchase, about $21,000 per month in rent, 5.83% cap rate.
6-plex plus garden suite near the Galleria Mall: about $1.2M purchase, about $23,000 per month in rent, 5.93% cap rate, roughly $1.1M of value added.
Severable lot in the Junction: two detached 6-plex plus ADU buildings, about $44,000 per month in rent, 5.95% cap rate.
These are base-case examples from the webinar, not offers or guarantees.
What we look for
Lots of at least about 25 x 120 ft, or severable lots that can be split in two.
Parking for the larger family units, and no large trees that limit what can be built.
Premium, family-friendly neighbourhoods, and a yield on cost of at least about 5.7% using conservative rents.
Managing the risks
We don't take on these risks for you; we educate our clients on how to deal with them. That means getting comfortable with local rents, working with a reputable builder on a fixed price, keeping a capital cushion so you never run short, and planning to hold the property long term rather than flip it.
Next step
The best next step is a call. We will walk through the numbers for your situation and introduce you to our partners. Use the button at the top of this page to get started.
This summary is for educational purposes only and is not financial, legal or tax advice. Figures, rates and availability change.
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