Rental property metrics, explained for Canadian investors
How lenders and investors judge a multiplex: what each metric measures, how to calculate it, and what the numbers look like on a real Canadian deal.
Canadian deals don’t run on US assumptions. Fixed-rate mortgages here compound semi-annually, most multiplex financing above five units goes through CMHC-insured or conventional commercial lenders with their own debt coverage rules, and cap rates vary widely between markets like Toronto, Calgary and Halifax. Each guide gives the formula in plain text, a worked example with Canadian numbers, the benchmarks lenders and investors actually use, and the sources behind them. Guides are written by Sean Morrier, co-founder of PropStack, and dated so you can see when the numbers were last checked.
Cap Rate vs. Cash-on-Cash Return: What’s the Difference?
Cap rate measures a property before financing; cash-on-cash measures the return on your own cash after the mortgage. Formulas, Canadian examples and benchmarks.
7 min read
What Is DSCR? The Debt Service Coverage Ratio for Canadian Rental Properties
DSCR is net operating income divided by annual mortgage payments. Learn the formula, what Canadian lenders require, and how DSCR sets your maximum loan.
7 min read
How to Analyze a Multiplex Deal in Canada: A Step-by-Step Guide
A step-by-step guide to analyzing a Canadian multiplex: rent roll, vacancy and expenses, NOI, cap rate, DSCR, returns, value-add, exit and stress tests.
10 min read
Buy and Hold vs. BRRRR vs. Flip: One Canadian Property, Three Strategies
We run one Canadian duplex through buy and hold, BRRRR and a flip, then compare cash needed, cash flow, profit, capital recovered, risk and tax side by side.
8 min read
How to Calculate Fix-and-Flip Profit in Canada: ARV, the 70% Rule and Break-Even Price
How to calculate fix-and-flip profit in Canada: all-in costs, land transfer tax, the 70% rule, break-even sale price, annualized return and the 365-day rule.
7 min read
BRRRR in Canada: How Much Can You Take Out in a Cash-Out Refinance?
How BRRRR works in Canada: the 80% refinance limit, appraisal and seasoning risk, how DSCR caps the new loan, and a worked example of capital recovered.
7 min read
CMHC MLI Select Explained: Requirements, Points and Benefits
CMHC MLI Select insures 5+ unit rentals at up to 95% LTV and 50-year amortization in exchange for affordability, energy or accessibility points. How it works.
7 min read
Vacancy Rate and Operating Expense Assumptions for Canadian Rental Properties
What vacancy rate and operating expense ratio to use for a Canadian rental: CMHC vacancy data by city, lender floors, line-item expense checklist and examples.
7 min read
How Much Down Payment Do You Need for an Investment Property in Canada?
Canadian rentals need 20% down unless you live in one unit. See owner-occupied 2–4 unit rules, 5+ unit and CMHC options, and how DSCR raises your down payment.
7 min read
How to Calculate Cash Flow on a Rental Property in Canada
Rental cash flow is rent minus vacancy, operating costs, mortgage payments and a capital reserve. See the step-by-step formula and a worked Canadian example.
7 min read
What Is a Good Gross Rent Multiplier (GRM)? Formula and Canadian City Benchmarks
A good GRM is a low one for your city: about 12 in Calgary, 14 in Toronto, 15 in Montréal and Vancouver. See the formula, city ranges and the cap rate link.
9 min read
What Is NOI? How to Calculate Net Operating Income on a Rental Property
NOI is rental income minus vacancy and operating expenses, before the mortgage. Learn the formula, what to include and exclude, and a Canadian 8-unit example.
7 min read