“Plex” short for multiplex, is a multi-unit dwelling. This means you have more than one tenant residing in the building. A mixed-use multiplex will usually have a commercial part to it; for example a store on the ground floor and a residential unit above it on the first floor.

A multiplex income property is considered the Holy Grail of income generating real estate. The simple reason being higher income and greater return on your investment. In a multiplex you will have more than one tenant paying you rent. Luckily for you the sum in dollars of multiple tenants occupying three units will always be larger than if only one tenant occupied all three.

Why is this you ask? It has to do with purchase power where one family can only afford so much for rent, while it’s easier to find several tenants that would pay less per unit but more in total for the same space. Add to that the fact that common expenses are divided amongst more people which improves affordability.

But multiplex income opportunities also come with strings attached and can be somewhat complex. Such strings may be, more management attention, typically more maintenance expenses due to higher traffic and some city compliance challenges.
But if you’re willing to put in the effort into owning and operating a multiplex you will be highly rewarded over time. If you are prepared to go through creating a new multiplex yourself your upside will probably be unlike any other in today’s real estate market.

However, please note, similar to any real estate matter and more so in this case, to succeed, in purchasing, building or operating a multiplex we recommend you work with a team of professionals who have experience in this line of business.

Happy “plexing”.

Zvi Schichter,
Managing Partner – Forest Hill Richmond Hill
Mortgage Broker, Loan Central / RMA Lic.#10464
[email protected] (647) 557-7389