If you’re already managing a 4-plex in Calgary or Edmonton, congratulations, you’re ahead of the game. But if you’re thinking about growing from a 4-unit building to a 10, 15, or even 20-unit apartment, this post is for you.
Scaling up in Alberta’s real estate market can feel like moving from a rowboat to a cargo ship. It’s the same water, but the stakes and rewards are much bigger. Here’s how to leap smartly, sustainably, and profitably.
1. Understand the Shift: Residential vs. Commercial Lending
A 4-plex typically falls under residential financing, which is more lenient and often easier to qualify for. You’re likely familiar with:
- 25-30 year amortizations
- Personal income qualification
- CMHC-insured options (with as little as 5-20% down)
But once you move to 5+ units, you’re entering the commercial real estate world. Here’s what changes:
- Lenders focus on the building’s income, not your income.
- Down payments are often higher, ranging from 15–35% (unless you qualify for CMHC MLI Select).
- Appraisals are based on cap rates, not comparable sales.
- You’ll deal with commercial underwriters, not residential mortgage brokers.
That said, commercial financing unlocks more scalability. If your property cash flows well, it becomes easier to qualify for your next building, because the building’s performance speaks louder than your T4.
2. Leverage Equity from Your 4-Plex
If you bought your 4-plex 2–5 years ago, chances are it has appreciated, and your tenants have helped pay down the mortgage. This is your growth capital.
Here’s a common strategy:
- Refinance your 4-plex
- Pull out $100K–$250K in equity
- Use that as a down payment on a 10–20 unit property
Example:
Let’s say your 4-plex is worth $800,000 and your remaining mortgage is $500,000. A lender might allow you to refinance up to 80% loan-to-value, giving you $140,000 in usable equity. That can easily cover a 15% down payment on a $900K–$1.1M apartment building.
3. Consider the CMHC MLI Select Program
For investors who want to grow sustainably, CMHC’s MLI Select program is a game-changer.
It allows you to:
- Put as little as 5–15% down
- Stretch amortization to up to 50 years
- Secure lower interest rates and longer terms
The catch? You need to meet affordability or energy-efficiency targets. If you’re buying a newer building or planning renovations, MLI Select can significantly reduce your monthly debt service, providing you with more flexibility and cash flow.
4. Property Management Will Change A Lot
Managing a 4-plex yourself is possible. But with 10, 15, or 20 units, it’s a whole different ballgame.
Challenges include:
- Coordinating multiple turnovers simultaneously
- Tracking and collecting rent from more tenants
- Maintenance scheduling for larger systems (boilers, roofs, etc.)
- Tenant communication at scale
Most mid-sized investors hire a property management company once they hit 8–10+ units. It’s an investment in your time, sanity, and professionalism.
Bonus: Lenders also look favorably on third-party management, especially for commercial loans.
5. Network and Act Like a Commercial Investor
Scaling up means thinking bigger. That includes:
- Touring multi-family listings regularly
- Attending local investor meetups
- Connecting with commercial brokers (they don’t list on MLS)
- Studying NOI, cap rates, and rent rolls
Treat your investments like a business, not a side hustle. Investors who thrive in Alberta’s mid-sized multi-family space are the ones who become operators, not just landlords.
Conclusion: You’re Closer Than You Think
The jump from 4 doors to 20 isn’t as far as it looks. With the right financing, equity strategy, and mindset, it’s an achievable leap, especially in Alberta’s investor-friendly cities like Calgary and Edmonton.
If you’ve mastered the 4-plex game, you already have the foundation. Now it’s time to scale and watch your portfolio grow beyond what you thought possible.
