Intro: When “Needs Work” Is Exactly What You’re Looking For
Most homebuyers run from properties that need major work.
But investors? They lean in.
In Edmonton, the biggest opportunities in multi-family aren’t in shiny turnkey buildings, they’re in the rough, neglected, under-rented ones.
These are your heavy value-add projects, where strategic renovations unlock cash flow and long-term wealth.
Let’s explore how to identify these buildings, what it takes to renovate them, and why they’re worth the effort.
🏚️ What Qualifies as a Heavy Reno in Multi-Family?
We’re not talking about a coat of paint and some new blinds.
A true “heavy unit turn” usually includes:
- Full kitchen replacements
- Bathroom gut jobs
- Flooring throughout
- Plumbing/electrical upgrades
- Common area refresh
- Exterior and curb appeal
In some cases, it even involves layout changes or legalizing suites.
This is construction meets investment, and it requires real planning.
🧭 The Investor’s Playbook: Buy, Renovate, Refinance, Hold
This is the BRRR (Buy, Renovate, Rent, Refinance, Repeat) model—adapted for apartment buildings.
Here’s the game plan:
- Buy Below Market – Target mismanaged or tired buildings with poor curb appeal and below-market rents.
- Renovate Units – Upgrade with a focus on durability, appeal, and rent growth.
- Raise Rents – Once units are complete, lease at new market rates.
- Refinance – Reappraise the building at its new value and pull out capital.
- Hold – Enjoy increased cash flow and long-term appreciation.
📊 Let’s Run the Numbers: 24-Unit Example
- Purchase price: $3.4M
- Avg. current rent: $875
- Post-reno rent target: $1,300
- Monthly increase: $425 x 24 = $10,200
- Annual rent gain: $122,400
At a 5.5% cap rate:
$122,400 ÷ 0.055 = $2.22M in new value created
If you spend $720,000 on renos ($30K/unit), you’ve just added over $1.5M in equity.
Even factoring in vacancies and holding costs, the return can be phenomenal.
🛑 But Don’t Ignore the Challenges
Heavy projects aren’t smooth sailing. Here are a few common hurdles:
- Contractor delays and cost overruns
- Tenant resistance (if the building is partially occupied)
- Cash flow dips while units are offline
- Permitting delays (depending on the scope)
- Bank skepticism without a solid plan
It’s essential to build a detailed scope, timeline, and contingency fund before you close.
🧑🔧 Your Team Makes or Breaks the Deal
You can’t do this alone. A successful heavy value-add project in Edmonton needs:
- A sharp realtor who knows distressed assets
- A contractor who’s done multi-family turns (not just single-family)
- A lender who understands BRRR-style financing
- And a property management team that knows how to lease and stabilize quickly
Green Casa is proud to work with value-add investors to ensure their hard work doesn’t go to waste. We’re your boots on the ground from pre-purchase walk-throughs to post-reno leasing.
💬 Final Thoughts: You’re Not Buying a Building, You’re Building Wealth
Heavy value-add projects aren’t for everyone. But for investors with vision, grit, and a reliable team, they’re one of the fastest ways to grow equity in Alberta’s real estate market.
So the next time you see a listing with bad photos, peeling paint, and dated kitchens, don’t scroll past.
That might be your best deal yet.
