When Sarah and Jamal bought their first 4-plex in northeast Calgary, they were nervous. They weren’t seasoned investors. They weren’t contractors. They were just a young couple looking to move out of their downtown condo and start building long-term wealth.
Two years later, their 4-plex is fully rented, their mortgage is covered, and they’ve built more equity than they expected. They’re now on the hunt for their next one.
This isn’t a one-off success story; it’s becoming a new normal in Calgary’s real estate scene.
Why Start with a 4-Plex?
Most people assume that real estate investing starts with a single-family home and ends with a high-rise apartment. But there’s a sweet middle ground, the 4-plex.
Here’s why it’s ideal:
1. Financing Is Simpler Than You Think
Because it’s under 5 units, a 4-plex qualifies as residential financing. This means:
- You can use CMHC-insured loans
- You can qualify with as little as 5 to 20 percent down
- You can live in one unit and rent out the rest to help qualify for the mortgage
Many Calgary buyers are using this strategy to get into the market with minimal cash, while creating rental income from day one.
2. The Math Just Makes Sense
Let’s break it down with a simple example:
- Purchase price: $850,000
- Down payment: $85,000 (10 percent)
- Monthly rent per unit: $1,500 x 4 = $6,000
- Mortgage, taxes, insurance: approx. $4,200
- Net monthly income: $1,800 before expenses
Even after setting aside money for maintenance and vacancies, you’re building equity and earning cash flow every month. And that’s before factoring in appreciation.
3. Calgary’s Rental Market Is Hungry for This
The demand for well-managed, medium-sized rentals is growing in Calgary. Many renters are:
- Downsizing from single-family homes
- Looking for more space than an apartment
- Wanting a quiet, residential feel
- Hoping for more affordable rent than newer condos offer
With population growth, a strong job market, and rising housing prices, Calgary is one of the few major Canadian cities where 4-plexes are still affordable and in demand.
How to Spot a Great 4-Plex Opportunity
Not sure where to look? Start by asking:
- Is the property in a walkable, transit-friendly area
- Does it have separate entrances and utilities
- Are rents in line with market averages
- Is the building well-maintained or needing value-add upgrades
- What are the local vacancy rates
Also, talk to your property manager early. At Green Casa, we help investors analyze potential cash flow, project renovation costs, and set up systems to make their first 4-plex run smoothly.
Tips for Managing Your First 4-Plex
It’s not always easy. But it’s very doable with the right approach:
- Set clear lease agreements from the start
- Treat tenants with fairness and consistency
- Keep a maintenance fund ready, things break
- Document everything: repairs, rent, and inspections
- And when in doubt, ask for help
Property management companies like ours exist so you can focus on growing, not stressing.
In Conclusion
The 4-plex is the underappreciated hero of real estate investing. It’s manageable, profitable, and full of potential, especially in a city like Calgary, where the fundamentals remain strong.
If you’re dreaming of financial freedom through real estate but feel unsure where to start, don’t overlook the humble 4-plex. It might be small in size, but it can deliver big opportunities.
