When most people think about real estate investing, they picture either a single-family home or a massive apartment complex. But in the middle lies a hidden gem: 10 to 20-unit apartment buildings. And in Edmonton, that middle ground might just be the smartest move you can make.
Here’s why.
1. The Perfect Balance: Scale Without Complexity
Small multi-family properties, such as duplexes and fourplexes, are great, but they come with limitations. You’re still managing most things yourself, and cash flow can be tight if a couple of units sit vacant.
Now, compare that to a 12- or 16-unit apartment. You’re in a whole new league of income diversity, but it’s still small enough that you’re not dealing with institutional red tape. You don’t need a million-dollar down payment or a massive property management firm. Many individual investors in Alberta are quietly scaling portfolios with mid-sized buildings like these.
2. Strong Cap Rates Make Edmonton Attractive
If you’ve been browsing markets across Canada, you’ve probably noticed this:
- Vancouver? 3% cap rates.
- Toronto? Maybe 4%.
- Calgary? 4.5–5.5%.
- Edmonton? Often 5.5–6.5%.
That’s right, Edmonton consistently offers some of the highest cap rates among Canada’s major cities. What does that mean for investors? More cash flow and a higher potential return on your investment from day one.
In real terms, this could mean an additional $1,000–$3,000 per month in net income compared to a similar-sized property in a larger city.
3. Neighborhoods That Work for Mid-Sized Apartments
Certain parts of Edmonton are ideal for 10–20 unit buildings. You’re not going after the luxury downtown condo crowd, but you don’t need to.
Look for:
- Capilano / Forest Heights: Strong rental demand, close to transit
- Prince Rupert / Queen Mary Park: Near NAIT and transit routes
- Alberta Avenue / Eastwood: Up-and-coming, great value plays
- Southgate / Pleasantview: Balanced mix of families and students
The sweet spot is finding areas with stable or growing populations, decent amenities, and rental prices that offer room for upside.
4. Edmonton’s Economy: Quietly Gaining Momentum
For years, Edmonton has been the overlooked cousin in the Alberta economy. But those paying attention know that things are shifting.
- The city has added over 100,000 people in recent years.
- Rental demand is growing as affordability in homeownership declines.
- The economy is diversifying into energy, tech, healthcare, and logistics.
- Vacancy rates are tightening, especially in affordable units.
And here’s the kicker: 10–20 unit buildings tend to offer just the right kind of housing that the Edmonton renter population is looking for: affordable, functional, and centrally located.
5. Financing Isn’t as Scary as You Think
Once you move into the 5+ unit range, you enter the world of commercial mortgages, which can be intimidating for new investors.
But the truth is: it can work in your favor.
- Lenders focus on the property’s income, not your T4
- You can qualify based on the building’s Net Operating Income
- With CMHC MLI Select, you can access up to 50-year amortization and lower down payments
That means it’s possible to purchase a 16-unit building with a solid rental roll and generate positive cash flow, even after accounting for financing and management fees.
Final Thought: It’s Closer Than You Think
If you’ve built equity in a fourplex or a few single-family homes, you might already have what you need to move up to a 12, 15, or 20-unit property.
It’s not just for corporations or ultra-wealthy investors anymore. In Edmonton, it’s a real opportunity available to those who are ready to take the next step.
