I’m Fanny — a heart-centered financial coach and licensed Mortgage Agent (Level 2) in Toronto. Many clients I work with are professionals or families seeking to expand into small apartment buildings (4–10 units) as part of their wealth strategy.
This guide gives you practical steps, clean math, and safe conditions so you can move confidently from “curious” to “owner.”
My approach: numbers + nervous-system calm. Decisions that fit your life — not someone else’s spreadsheet.
- Book your free discovery call: /en/contact
Quick Check (60 Seconds Before Falling in Love)
Core Formulas:
- GMR: total rent from all units
- OPEX: taxes, insurance, utilities you pay, maintenance, lawn/snow, garbage, mgmt fees (estimate 35–45% of GMR if unknown)
- NOI: GMR − OPEX
- ADS: annual debt service = mortgage payment × 12
- Cash Flow: NOI − ADS (build a cushion)
- DSCR: NOI ÷ ADS → target ≥ 1.20
- Cap Rate: (NOI ÷ Price) × 100
If DSCR < 1.0 or cash flow is negative, pause and renegotiate or revisit expenses.
1) Choose Your Investment Strategy
House-hack (live in one unit), pure investment (rent all), or stabilize & improve (safety/systems).
If you value flexibility and learning, house-hack; if you want separation, budget for management.
2) Build Your Financing Plan
Typical down payment: 20–25%. Lenders stress-test rates.
Pre-approval checklist: ID/SIN, income proof, down payment & closing cost proof, existing debts/taxes, draft rent roll with utility responsibilities. I’ll match you to the right lender and walk you from appraisal to close.
3) Analyze the Building (Before You Offer)
Request rent roll, 12-month income/expense, fire/electrical reports, insurance declaration, service contracts.
Example: 6 units @ $1,950 → GMR $11,700/mo; OPEX @ 40% = $4,680/mo; NOI $7,020/mo ($84,240/yr); Price $1.45M → Cap ≈ 5.8%; ADS ≈ $70k/yr → DSCR 1.20; Cash Flow ≈ $14,240/yr (~$198/unit/mo).
If tight, negotiate price/vendor credits or reduce OPEX (separate hydro, efficiency upgrades).
4) Write a Safe Offer (Conditions Protect You)
Include financing, inspection, review of leases/estoppel, insurance quote, and fire code/zoning comfort letters.
Email script to your agent:
“We’d like to submit $___ subject to financing, inspection, review of leases/estoppel, and insurance. Please request utility/property-tax statements and recent fire/electrical reports. We’re aiming for a smooth, professional close.”
5) First 90 Days as a Landlord
Pre-closing: lawyer, insurance, utilities, maintenance.
Days 1–7: tenant intro letter; confirm rent payment, rules, emergency contact.
Days 8–30: safety upgrades; bookkeeping system.
Days 31–90: plan capital repairs; build a 3–6 month reserve.
Welcome Note (sample):
“Hi, I’m Fanny (or your property manager). We value safe, respectful housing. Repairs: text/email ___. Emergencies: call ___. Rent due on __. Thank you for being part of this community.”
Risks & Mitigations
Vacancy (keep 1 month/unit in reserve; market early), unexpected repairs (prioritize safety + maintenance calendar), rate changes (underwrite conservatively; accelerate principal when rates dip).
Tools to Simplify
Cash-flow worksheet, property folder checklist, weekly 20-min review — available at /en/tools.
Work With Us
Buying a small apartment building can feel overwhelming — but with the right math, scripts, and strategy, it’s calm, clear, and doable.
- Book your free discovery call: /en/contact
- Explore our Tools: /en/tools
Holistic. Bilingual. Toronto-based.
Educational only. Not legal, tax, or individualized investment advice.