Every investor remembers their first leap into multi-family real estate, maybe it was a duplex, a 4-plex. It’s the milestone that proves you can handle multiple tenants, manage expenses, and keep the property running without losing sleep. But if your goal is long-term financial independence and generational wealth, stopping there won’t cut it. The real growth comes when you scale up, when you move from a handful of units to a 10, 15, or 20-unit apartment building.
Calgary and Edmonton are uniquely positioned for this kind of growth. These cities offer strong population inflows, consistent rental demand, and lower price points compared to overheated markets like Toronto and Vancouver. That combination makes Alberta one of the best places in Canada to scale your portfolio.
Why Scaling Up Matters
A 4-plex can cover expenses. A 20-unit building can change your financial future.
Here’s why mid-sized apartments are a game-changer:
- Cash Flow Stability
In small properties, one vacancy can wipe out your monthly profit. In a 20-unit building, losing a single tenant barely moves the needle. More doors mean smoother, more predictable cash flow. - Operational Efficiency
Expenses like insurance, property management, and maintenance scale better across larger buildings. Instead of paying separately for each unit, costs are spread out, meaning higher margins per door. - Forced Appreciation
Unlike smaller residential properties, apartment values are tied directly to Net Operating Income (NOI). Raising rents slightly or cutting expenses smartly can add hundreds of thousands, or even millions, to your property’s value.
Financing the Jump: What Changes After 4 Units
The financing landscape shifts once you step beyond four doors:
- Residential Loans (4 units or fewer):
Approval depends mostly on your income, credit score, and debt-to-income ratio. Lower down payments and simpler terms make these accessible for beginners. - Commercial Mortgages (5+ units):
Here, lenders care less about your paycheck and more about the building itself. They’ll scrutinize NOI, vacancy rates, and rental history. Expect larger down payments, stricter conditions, and more paperwork—but also access to much bigger deals. - CMHC MLI Select Program:
For properties that meet affordability, accessibility, or energy-efficiency standards, this program offers extended amortizations (up to 50 years), lower interest rates, and higher loan-to-value ratios. For Alberta investors, this can make scaling into 20-unit buildings surprisingly achievable.
The Management Shift: From Hands-On to Systems
Managing four units on your own is tough, but doable. But scaling to 20 tenants without professional systems? That’s a recipe for burnout.
Here’s what larger properties require:
- Property Management Teams: Rent collection, tenant screening, and turnover management become daily tasks, not occasional ones.
- Reliable Contractors: With more plumbing, heating, and electrical systems, having a dependable network saves time and stress.
- Professional Systems: Digital bookkeeping, online payment portals, and maintenance tracking are no longer optional; they’re essential.
Many Alberta investors outsource management to professionals in Calgary and Edmonton. These teams often pay for themselves by reducing vacancies, catching maintenance issues early, and keeping tenants happy.
Equity as a Growth Engine
Your first 4-plex isn’t just a starting line: it’s your equity engine.
As values increase, you can refinance to unlock capital. That equity becomes the down payment for the next purchase. For example:
- Buy a 4-plex in Calgary → build equity
- Refinance → buy a 10-12 unit in Edmonton
- Grow NOI → trade up to a 20+ unit building
This snowball effect is how small landlords evolve into serious portfolio owners.
Why Alberta Is the Perfect Place to Scale
- Calgary: Rapid population growth, economic diversification, and a robust job market continue to attract tenants steadily.
- Edmonton: Lower purchase prices and higher cap rates create strong cash-on-cash returns for investors.
Together, these cities offer a balanced environment, affordability in entry, and strength in demand that is hard to find elsewhere in Canada.
