Analyze a duplex, triplex, quadruplex or 6-plex+ end-to-end: MRB, realistic cap rate, 10-year after-tax IRR, six stress-test scenarios, CapEx red flags, and side-by-side comparison of five holding structures (solo, married couple, common-law, indivision, corporation). Final BUY / NEGOTIATE / AVOID verdict.
Estimation for decision support. Tax calculations use Quebec 2026 averages and do not replace advice from a tax specialist, notary, or OACIQ broker. Confirm with the right professionals before any transaction.
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I'll ask a series of questions across 8 steps to understand your situation, then produce a comprehensive numeric analysis: GRM, cap rate, 10-yr IRR, holding-structure comparison, stress tests, CapEx flags, acquisition costs, and tailored recommendations.
1-3 — Profile
Structures, marital situation, financials
4-6 — Strategy
Objectives, property, preferences
7-8 — Analysis
Review and full report
You can go back at any time. Your answers are not sent to any server — all calculations run locally in your browser.
Investing in Quebec plex
A residential plex is three deals in one: a financing deal (mortgage and equity), an operating deal (rents minus expenses and management), and a tax deal (which entity holds the asset and how income flows). The price is fair only when the worst of those three still beats a passive portfolio.
MRB (multiplier of gross rents) is what listings show first because it is simple — but it ignores expenses, financing and taxes. Two plexes at the same MRB can have wildly different cashflow if one has owner-paid heat and the other doesn't, or if one is in a high-tax municipality.
Use MRB as a quick filter (above 20 is rarely workable), then move immediately to the realistic cap rate which subtracts industry-norm expenses regardless of what the seller declared.
Sellers and their brokers consistently understate maintenance (often shown at 1% of rents instead of 1.5% of property value), vacancy (often shown at 0% in tight markets) and management (often $0 because the owner self-manages). The tool re-prices each line at industry norms and shows you both numbers.
Bad debt at 2%, vacancy at 4%, maintenance at 1.5% of value, management at 7% of effective gross — those are the floors. If a deal works with declared expenses but not with realistic expenses, you are buying the seller's labour for free.
Personal solo holding is the simplest and almost always the most tax-efficient for one or two doors. A married couple splits income 50/50 by default and benefits from the family patrimony.
Common-law (de facto) partners face attribution risk under Quebec civil law — undocumented contribution can be challenged. The tool models a 70/30 split with a warning to draft a contribution agreement.
Indivision works for unrelated co-owners but requires a notarized indivision agreement covering buy-out, vote thresholds and exit. Without that document, exit becomes a partition lawsuit.
A corporation costs $2,500 setup and $2,000 annual accounting/legal and only beats personal at higher door counts or top marginal brackets where dividends can be deferred. The integrated tax rate after RDTOH refund is approximately 36–44% depending on the shareholder's marginal rate — rarely worth the cost for one plex.
Since February 2024, Loi 31 has tightened the framework around lease assignment, eviction-for-subdivision and senior-tenant protection. Combined with the TAL's calculation grid that limits rent increases, your projected revenue follows the grid — not the market. Read the Loi 31 guide before modelling 5% annual rent bumps.
The tool's default rent-increase assumption is 2.5%/year. Push higher only if you have a documented plan to justify it under the grid (capital improvements, energy upgrades, vacancy turnover with market resets) — and even then, accept that a tenant can contest at the TAL.
Pre-1950 buildings risk knob-and-tube wiring (≈$25k to rewire) and original lead paint or asbestos in plaster. 1960–1980 construction often has aluminum wiring (≈$18k to mitigate with COPALUM connectors or partial rewire). 1995–2007 builds with original plumbing carry Kitec failure risk (≈$30k to repipe). Roofs older than 20 years (shingle) or 25 years (membrane) need replacement budget (≈$15k–25k). Original windows past 25 years lose 3–5% of net income per year to heat loss until replaced.
None of this replaces an inspection — but it should appear in your purchase offer as a price concession or a conditional repair clause.
A green BUY is rare on listed plexes — it usually means the seller mispriced or the asset has unrealized rent potential. A yellow NEGOTIATE is normal: come back with a counter-offer that closes the binding constraint (typically price, sometimes seller financing). A red AVOID means the price assumes the buyer accepts a worse return than passive investing — walk away unless you have a non-financial reason to own this asset.
Whatever the verdict, validate the structure choice with a tax advisor, the building condition with a certified inspector, and the placement strategy with a licensed broker. AA Location offers a free consultation with an OACIQ broker to validate your placement plan once an offer is accepted. Book a free consultation.
General information provided for guidance. For an assessment tailored to your situation, contact us.
Go further
Loi 31, subdivision evictions, lease assignment and the 2026 TAL rent-increase grid.
How tenant placement quality drives plex IRR in Quebec (2026 numeric analysis)
Vacancy, bad debt and turnover: three variables placement controls that flip 10-year IRR on a Montreal, Laval or Longueuil duplex/triplex. Numeric demonstration using the plex investment analysis tool.
Investing in a Montreal duplex in 2026: complete buyer guide
Montreal duplex market in 2026, top sectors, return calculation, down payment, financing, mortgages, and the grid to evaluate an opportunity before buying.
Eviction for subdivision or expansion in Quebec: Law 31 and the 24-month indemnity
Since Law 31, evicting a tenant to subdivide, expand, or change the use of a rental unit costs a MINIMUM of 24 months' rent in indemnity — compared to 3 months before February 2024. Conditions, procedure, and economic analysis before you start.
Lease assignment in Quebec under Law 31: what a landlord can finally refuse
Since February 2024, Law 31 has flipped the balance of power on lease assignments. Landlords can now refuse for any serious reason — but the refusal ends the lease. Procedure, deadlines, traps to avoid.
Practical answers for tenants and owners across Greater Montreal.
AA Location — Tenant placement for plex owners
A well-screened placement reduces vacancy, late payments and unit damage — the three line items that quietly destroy plex IRR. OACIQ broker, rigorous verification, objective criteria. Free consultation.
