How One Small Apartment Building Can Build Big Wealth in Alberta’s Capital
You don’t need to be a big-shot developer or own a high-rise downtown to win big in real estate. In Edmonton, even a modest 10-unit apartment building can become a powerful asset in your investment portfolio if you know how to evaluate it properly.
At Green Casa Property Management, we help local and out-of-province investors break down multi-family opportunities using time-tested methods. Today, we’re walking you through the exact process we use to assess a 10-unit apartment complex from rental income to cash-on-cash returns.
Let’s run the numbers and unpack the potential of small-scale multifamily investments in Edmonton.
Step 1: Get Clear on the Property’s Price and Rent Roll
Let’s say you’re considering a 10-unit apartment near Southgate Mall, a popular area close to transit, shopping, and employment centers. It’s listed for $1.2 million, and the rental breakdown looks like this:
- 8 units rent at $1,200/month
- 2 units rent at $1,100/month
Monthly Rental Income:
(8 × $1,200) + (2 × $1,100) = $11,600
Annual Gross Income:
$11,600 × 12 = $139,200
That’s your gross potential income before expenses. Now let’s get into the nitty-gritty.
Step 2: Estimate Operating Expenses
Every multi-family property has operating costs. Here’s a realistic annual expense estimate for this building:
| Category | Estimated Cost |
| Property Taxes | $16,000 |
| Insurance | $5,000 |
| Property Management (6-8%) | $8,000 |
| Maintenance/Repairs | $6,000 |
| Utilities (covered by landlord) | $10,000 |
| Reserve for Future Repairs | $3,000 |
Total Annual Expenses: $48,000
These expenses can vary depending on how the building is structured (e.g., separate meters, landlord-paid utilities, tenant turnover), but this is a strong baseline.
Step 3: Calculate NOI (Net Operating Income)
The Net Operating Income tells you how much profit the building generates before debt payments.
NOI = Gross Income – Operating Expenses
$139,200 – $48,000 = $91,200
This is the income the property would yield if purchased in cash.
Step 4: Determine the Cap Rate
The Capitalization Rate helps you compare properties based on returns relative to price. It’s especially useful for comparing multi-family deals across markets.
Cap Rate = NOI ÷ Purchase Price
$91,200 ÷ $1,200,000 = 7.6%
That’s a solid cap rate, especially compared to Vancouver or Toronto, where cap rates are often below 4%. Edmonton continues to offer excellent value for the dollar.
Step 5: Project Your Cash Flow with Financing
Assume you’re financing the purchase with:
- 25% down payment = $300,000
- Loan amount = $900,000
- Interest rate = 6%
- Amortization period = 25 years
- Monthly mortgage payment ≈ $5,800
- Annual debt service ≈ $69,600
Now subtract your annual loan payments from NOI:
Cash Flow = NOI – Debt Service
$91,200 – $69,600 = $21,600/year
Or $1,800/month in positive cash flow
That’s a 7.2% cash-on-cash return, and we haven’t even factored in rent increases, tax benefits, or future appreciation.
Why This Matters
Edmonton remains one of Canada’s most underappreciated multi-family markets. With:
- No rent control (flexibility to adjust rents to market annually)
- Low per-door acquisition costs
- Strong demand in growing suburbs
- LRT expansion is increasing connectivity
Investors can find better yields than in almost any other major Canadian city.
Small buildings like this are also more accessible than larger developments, making them perfect for new investors looking to enter the multi-family game.
Pro Tips from the Green Casa Team:
✅ Target growth zones: Look near LRT routes, new schools, or redevelopment zones. These areas often command higher rents over time.
✅ Account for vacancies: Always budget a 5–10% vacancy buffer. Alberta is landlord-friendly, but tenant turnover still happens.
✅ Get a building inspection: Multi-family buildings can hide big capital expenditures, such as roofs, boilers, and plumbing stacks.
✅ Use a professional property manager: Someone local, experienced, and responsive (ahem, that’s us!) can make or break your experience.
The Green Casa Advantage
At Green Casa, we do more than collect rent. We help landlords and investors:
- Find high-performing properties
- Navigate Alberta-specific financing (CMHC MLI, commercial loans, etc.)
- Screen tenants
- Optimize income through renovations, layout changes, or short-term rentals
- Provide transparent monthly reporting and full-service property care
Whether you’re based in Calgary, Edmonton, or anywhere across Canada, we become your local boots on the ground.
Final Thoughts: Small Building, Big Future
A 10-unit building might not sound flashy. But when you combine strong cash flow, smart financing, and local expertise, it can outperform larger, more expensive projects, especially in the Edmonton market.
With the right management partner, you’re not just buying bricks and mortar. You’re buying consistent income, long-term growth, and peace of mind.
Green Casa Property Management is here to help you unlock that potential.
📍 Calgary & Edmonton
📞 +1 (403) 835-4999
📧 info@greencasa.ca
