Investing

Looking for a Multiplex For Sale in Toronto?

Jaime Goldman
multiplex for sale toronto

A multiplex is a residential building divided into multiple self-contained units, typically ranging from two to four units. In Toronto, these structures are integral to the city’s “missing middle” housing strategy, aiming to increase density without altering neighbourhood character.​ If you’re searching for a multiplex for sale in Toronto, then we cover everything you need to know.

Let’s get to it!

Types of Multiplexes:

  1. Duplex: A building with two separate units, either stacked vertically or side-by-side.
  2. Triplex: Comprises three units, often with one on each floor.
  3. Fourplex: Contains four units, maximizing rental income potential.
  4. 4+1 Configuration: A four-unit building with an additional accessory dwelling unit (ADU), such as a laneway, garden or basement suite.​

Toronto’s recent zoning reforms now permit up to four units on residential lots citywide, facilitating the development and conversion of multiplex properties.

Thinking about a multiplex for sale in Toronto? Click here for active listings.

Pros and Cons of Investing in Multiplexes

1. Duplex

Pros:

  • Affordability: Lower entry cost compared to larger multiplexes.
  • Owner-Occupancy: Live in one unit while renting out the other.
  • Simplified Management: Fewer tenants to manage.​

Cons:

  • Limited Income: Only one rental unit generating income.
  • Financing Constraints: May not qualify for commercial financing benefits.​

2. Triplex

Pros:

  • Increased Cash Flow: Two rental units provide higher income.
  • Financing Flexibility: Still eligible for residential mortgages.
  • Scalability: Opportunity to add an ADU for additional income.​

Cons:

  • Management Complexity: More tenants to oversee.
  • Maintenance Costs: Higher upkeep expenses.​

3. Fourplex

Pros:

  • Maximized Income: Three rental units enhance revenue.
  • Commercial Financing: May qualify for better loan terms based on rental income.
  • Economies of Scale: Cost-effective management per unit.​

Cons:

  • Higher Purchase Price: Greater initial investment required.
  • Regulatory Scrutiny: More stringent building codes and inspections.​

4. 4+1 Configuration

Pros:

  • Additional Income Stream: ADUs offer extra rental revenue.
  • Enhanced Property Value: Increased unit count boosts valuation.
  • Future-Proofing: Aligns with Toronto’s housing densification goals.​

Cons:

  • Complex Construction: Building ADUs may involve zoning challenges.
  • Financing Nuances: May require commercial loans with different terms.​

Real-World Examples of Multiplexes in Toronto

The City of Toronto has documented various multiplex properties across neighbourhoods, showcasing the diversity and adaptability of these structures:​

  • 184 Annette Street (Junction Area): A semi-detached house converted into four units, exemplifying density in established neighbourhoods.
  • 31 Roslin Avenue (Lawrence Park North): A detached home transformed into a triplex, maintaining neighbourhood character while increasing housing supply.
  • 29 Thirty Fifth Street (Long Branch): A purpose-built three-unit home with contemporary renovations, highlighting modern multiplex design.​

These examples illustrate how multiplexes can be integrated into various Toronto communities, offering both aesthetic appeal and functional housing solutions.

Investment Checklist for Multiplex Properties in Toronto

Before purchasing a multiplex, consider the following factors to ensure a sound investment:

  1. Location Analysis:
    • Proximity to public transit, schools, and amenities.
    • Neighbourhood rental demand and vacancy rates.​
  2. Financial Assessment:
    • Review current rent rolls and expense statements.
    • Calculate potential cash flow and return on investment.​
  3. Property Inspection:
    • Evaluate the condition of roofing, plumbing, electrical, and HVAC systems.
    • Identify any structural issues or required renovations.​
  4. Zoning and Permits:
    • Confirm the property’s compliance with local zoning bylaws.
    • Ensure all units are legally recognized and permitted.​
  5. Tenant Considerations:
    • Review existing lease agreements and tenant histories.
    • Understand Ontario’s rent control regulations and tenant rights.​
  6. Financing Options:
    • Explore mortgage products suitable for multiplex properties.
    • Consult with lenders experienced in investment real estate.​
  7. Property Management:
    • Decide between self-management or hiring a professional property manager.
    • Budget for ongoing maintenance and management fees.​
  8. Exit Strategy:
    • Plan for long-term goals, whether it’s holding for cash flow, refinancing, or selling.
    • Consider market trends and potential appreciation.​

Conclusion: How to invest in a multiplex for sale Toronto

Investing in a multiplex for sale in Toronto can be a lucrative endeavor, offering steady rental income and long-term appreciation potential. By understanding the types of multiplexes available, weighing their respective pros and cons, and conducting thorough due diligence, investors can make informed decisions aligned with their financial goals.​

As Toronto continues to evolve its housing landscape, multiplex properties stand out as a viable solution to meet the city’s growing demand for diverse and affordable housing options.​

Call us at 416.457.6088 or email [email protected] with any questions about your home buying journey.

Learn more about the different property types in Toronto. Check out our guides:
The Ultimate Guide to Semi Detached Homes Toronto
The Ultimate Guide to the Condo Market Toronto
The Ultimate Guide to Triplexes For Sale Toronto