Real Estate Talk:
Rewards of investing

Multi-residential income property is a passive, stable, and consistent investment

By Joseph Marovitch

June 4, 2026

As a broker since 2009, I discovered a fascination with investing in multi-residential income property. My background was not in real estate, except from a personal perspective. I purchased several properties prior to becoming a broker, and all were lucrative. However, my prior experience was as a residential summer camp director/owner from 1987 to 2010, caring for up to 400 children ages 6 to 16.

My experience and training, aside from other aspects of the field, focused on supervision and care for children. Over 28 years as a camp director, I developed an innate need to protect those I am responsible for and those in distress. This ties into multi-residential investment since landlords are responsible for the tenants they rent space to.

I have worked in the field of multi-res investment, as well as several other areas of the industry, since the beginning of my career as a broker. My experience is in buying, selling, managing, and expanding portfolios of multiple properties. My approach to multi-residential investment is strategic, logical, ethical, and fair, always with the protection of landlords and tenants in mind during transactions and operations.

Investing in the stock market is a very good strategy to accumulate wealth over the long term if done properly. However, the stock market can be volatile, especially in today’s global climate, with spikes and sudden drops that investors and professional investment advisors must constantly monitor.

Multi-residential income property is a more passive, more stable, and more consistent investment. For the investor, there is more control over income and growth. Multi-res can also provide multiple income streams from rent, parking, and laundry services, as well as an increase in the property’s intrinsic value over time.

I have been told by clients that collecting rent at the beginning of each month is not the most exciting or glamorous work if multi-res is one’s only profession. The excitement comes from refinancing one income property to purchase another and another, thus creating a generational, consistent, and stable income.

My approach to multi-residential investment is strategic, logical, ethical, and fair, always with the protection of landlords and tenants in mind during transactions and operations.

However, investing in a single property or creating a portfolio of several properties only works if the process is done properly from the outset.

Purchasing

The process of purchasing an income property, in summary, is choosing the right locations, preferably fully rented, if one is not a developer, which is another topic. A fully rented income property makes it much easier to determine the value and purchase price. It also motivates the lender to provide lower interest rates and more advantageous terms. As a portfolio grows, banks tend to be even more motivated to work with investors.

Pricing

The values of multi-residential properties (meaning six or more units) can be determined in more than one way. The first is by determining the capitalization rate, or percentage rate of return. There is a formula to determine the value: net income / purchase price x 100 = capitalization rate/rate of return. At a glance, a buyer can see the potential cap rate and value.

However, there are factors that may reduce the rate of return, and these factors must be verified by checking the leases for the rent and expiration dates, examining all the expenses related to the property and inspecting the property for possible defects in the roof, foundation, windows, balconies, ventilation, electrical systems, plumbing, siding and more. All these factors can reduce the indicated cap rate, resulting in price renegotiation, cancellation of the offer, or purchase as is.

The cap rate can then be verified again by comparing the average rents in the area. If the verified cap rate indicates that the property to purchase is selling at $235,000 per door and the average price per door in the area is $240,000, then the price-per-door value of the investment is correct. If the average price per door in the area is $315,000, then the investor is purchasing at a discount. If the average price per door in the area is $135,000, then the investor is purchasing at a premium/loss.

‘A fully rented income property makes it much easier to determine the value and purchase price. It also motivates the lender to provide lower interest rates and more advantageous terms.’

Strategy

Strategy can make or break a deal. Strategy is part of negotiation and maintaining good relations between the buyer and seller. Strategy starts with the offer price. If there are multiple offers on the table for the same property, the investor may have to raise their offer to get in the door. If there is only one buyer offer, the offer can be closer to the property’s fair value. Either way, the final price will be based on fair value unless the seller is desperate to sell or stubborn and wants a price that is too high.

There are three basic conditions in an offer: examination of leases and expenses, inspection, and financing. There can also be a fourth condition of a first preliminary visit, unless the seller permits visits prior to submitting an offer. The first visit is to view the location, the property’s apparent condition, and one or two apartments.

If the buyer is not satisfied, then they can stop the process. If they are satisfied, the entire property can be examined during the inspection. The reason is that legal protocols are in place to prevent tenants, who have rights, from being repeatedly and in close succession inconvenienced.

Strategy comes into play by spacing these conditions apart so they do not overlap, and, if renegotiation is required, it is done only after due diligence. One cannot request a price reduction after an examination of the documents and then request another price reduction after an inspection. Nor can the price reduction be unreasonable. This type of strategy causes terrible relations with the seller and usually stops the process in its tracks.

Responsibility

Deciding to invest in residential income property is not just about money. Like a teacher, doctor, camp director, or landlord, the person is responsible for the tenant’s welfare. Landlords and tenants must abide by the terms in the lease; however, the responsibility does not stop there.

If one tenant is disturbing the other with loud music or aggressive behaviour, the aggrieved tenant must turn to the landlord. If the heat turns off in the middle of the night in minus 40 °C, if there is a bug infestation, if there is mould in the apartment, or anything else that can affect the physical or mental health of the tenant, that is attributed to the state of the property, the landlord must address these issues. If the landlord does not address the issues in a timely manner, the tenant can request assistance from the Tribunal Administratif du Logement (TAL) at 1-800-683-2245.

The information in these articles is a summary. Should you have questions, comments or wish to discuss further, please refer to the comments section at the bottom of the page or contact me directly. To view past articles, click here.

STATE OF THE MARKET

Residential sales decreased by 7% year over year in April and May. Rising interest rates, rigorous financing and an uncertain market due to ongoing global events are causing buyer hesitation. Active listings have increased to 20,959 in April, and total inventory is up 9%. The result is that we are now in a buyer’s market if buyers find an incentive to move forward.

Average prices for single homes have risen by 3.3% in the month of April. Single-family home prices continue to rise even as inventory increases, due to land scarcity on the island of Montreal. This has led to an increase in condo development and sales.

‘Active listings have increased to 20,959 in April, and total inventory is up 9%. The result is that we are now in a buyer’s market if buyers find an incentive to move forward.’

All apparent indicators show the market slowly stabilizing. However, buyers and sellers should monitor verified news and keep an eye on current global events, such as developments in Gaza, Ukraine, and the Iran-U.S. conflict. All these areas are volatile and affect global economies and our real estate market through supply chain disruptions, inflation, and interest rates. It is a complicated situation; however, as I have stated in the past, there are strategies to mitigate any risk when investing or selling. Have a wonderful weekend.

The information in this article is derived from the CMHC, the Financial Post, other verifiable news outlets, and interpreted by this writer to provide an informed opinion and facts.

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Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep-away summer camp established in 1968. Using the same strengths he used caring for families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible for, Joseph applies this to his present real estate broker career. Should you have questions, feel free to contact Joseph Marovitch at 514 825-8771 or at josephmarovitch@gmail.com