I want to ask you something. Have you ever looked at your 4-plex. Thought about doing something much bigger? I have been in your shoes. You have built some value you have learned how to do things. Now you are ready to move up.
But here is the thing: Going from a 4-plex to a 20-unit apartment building is not about buying more apartments.
It is a new way of thinking about real estate investing. When you have than 4 units you are in the commercial world and everything is different. In this guide I will show you how to go from a 4-plex to a 20-unit apartment building in Alberta. I will talk about getting money using the value in your 4-plex, managing properties and picking the place to buy.
Why Scale Up? The Case for Mid-Sized Multi-Family
Let me tell you why it makes sense to go from a 4-plex to a 10-20 unit building.
- A 4-plex gives you four streams of income. A 20-unit building gives you twenty. That is not more rent it is also more efficient.
- One roof covers twenty apartments, not four.
- You have one boiler, one tax bill and one insurance policy.
- The cost per apartment goes down when you have units.
- Going from a 4-plex to a 20-unit apartment building also changes how you build wealth.
- Instead of just hoping the value of your property goes up you are building value through the income your property makes.
- A 20-unit building in Calgary or Edmonton is big enough to have management but small enough to avoid the problems that come with very big properties.
For people who want to build wealth this is the sweet spot.
The Financing Shift: Residential vs. Commercial Lending
This is where things get interesting. A 4-plex is considered a property. You get a loan based on your income. You can get a good deal with a small down payment. When you have more than 4 units you are in the commercial world.
Lenders look at how much income the property makes, not your personal income. You usually need to put down 20-35% of the price unless you qualify for a program. When you are going from a 4-plex to a 20-unit apartment building commercial lending can actually work in your favor if you know how to use it.
Leveraging Your 4-Plex Equity to Make the Leap
I want to show you how to use your 4-plex to get a property. If you bought your 4-plex a years ago it is probably worth more now and your tenants have helped pay down the loan. You can use this value to get a bigger property.
Here is what you can do:
Refinance your 4-plex take out some of the value and use that as the payment for a bigger apartment building.
For example: if your 4-plex is worth $800,000 and you owe $500,000 you can. Get $140,000 in cash. You can use that to buy an apartment building.
The CMHC MLI Select Advantage: 5% Down and 50-Year Amortization
If you are serious about going from a 4-plex to a 20-unit apartment building you need to know about the CMHC MLI Select program. It is a program that helps people buy or build rental properties with 5 or more units. You can get a loan with little as 5% down and pay it back over 50 years.
This program uses a points system to determine how good of a deal you can get. If you meet standards for affordability, energy efficiency and accessibility you can get a better loan.
Property Management: A Whole New Ballgame
Managing a 4-plex is one thing. Managing a 20-unit building is a whole different story. You have to deal with more tenants, collect rent, schedule maintenance and handle problems. Most people hire a property management company when they have 8-10 or more units.
It is an investment in your time and sanity. When you are going from a 4-plex to a 20-unit apartment building hiring a property manager is not optional it is necessary.
Where to Invest in Alberta: Calgary and Edmonton Hotspots
Alberta is a place to invest in real estate especially in Calgary and Edmonton. Some neighborhoods in Calgary like Killarney and Mount Pleasant are being. Are great for small and medium-sized apartment buildings.
Other areas, like Airdrie and Okotoks have land costs and strong demand for rentals. Edmonton also has a rental market and relatively low costs. If you meet standards for affordability, accessibility and energy efficiency you can get a better loan and attract more tenants.
Conclusion
Going from a 4-plex to a 20-unit apartment building is a way to increase your income build wealth and achieve your long-term goals. The way you get a loan changes but programs like CMHC MLI Select can help. You can use the value in your 4-plex to get a property and hire a professional property manager to help you.
Alberta is a place to invest with strong demand for rentals and relatively low costs. The smartest investors do not just grow they grow strategically. Are you ready to leap?
Frequently Asked Questions (FAQs)
A 4-plex uses financing based on your personal income. A 20-unit building uses financing based on the propertys income.
MLI Select is a program that helps people buy or build properties with 5 or more units. It uses a points system to determine how good of a deal you can get.
You can refinance your 4-plex take out some of the value and use that as the payment for a bigger apartment building.
Yes, most people hire a property management company when they have 8-10 or more units.
Some neighborhoods in Calgary like Killarney and Mount Pleasant are great for medium-sized apartment buildings. Other areas, like Airdrie and Okotoks have land costs and strong demand for rentals. Edmonton also has a rental market and relatively low costs.
The sweet spot is a 10-20-unit building, where you can have management and avoid the problems that come with very large properties.
Buildings that have 6 to 20 units are really great. These buildings are large enough to save money by buying in bulk. They are small enough for someone to take care of without needing a lot of help from big companies. Buildings, with 6 to 20 units are the size because they can do this.
Co-Founder & Director
Hafil Perincheeri is an engineer-turned-realtor, investor, and builder based in Calgary, Canada. As Co-Founder and Director of Greencasa, he specializes in home flips, property development, and investment strategies. Since 2019, he has guided clients in home buying, multifamily investing, and financing options like CMHC and MLI Select, ensuring transparent, informed decisions.