The rules have changed. Investors who move on this rare window of opportunity are setting themselves up for long-term cash flow and big-time upside.
Rules have changed. Investors who capitalize during this rare window of opportunity are in for long-term cash flow and big-time upside.
There’s a change in Toronto housing—and most individuals have not realized it. Although the market continues to grapple with high rates of interest and affordability issues, there is one strategy that’s emerging for investors seeking solid cash flow, minimal risk density, and long-term appreciation:
The as-of-right 6-unit multiplex.
Let’s get to the why—not with fluff. It’s a clear, numbers-driven, high-confidence opportunity. And it’s still in its early days.
1. As-of-Right Zoning Does Not Require You to Beg the City
Since Toronto’s zoning amendments, you are allowed to construct as much as 6 residential units on any residential lot in the city without having to undergo rezoning.
What does that essentially mean in English? You don’t have to:
- Proceed to the Committee of Adjustment
- Wait years to obtain planning approvals
- Battle belligerent neighbors in City Hall
If you remain within regulation—you know, height, setbacks, parking—you can quickly and legally construct 6 units.
That saves you money, time, and uncertainty. Speed is everything in this market.
2. It Costs More to Build—but The Math Remains True
Yes, we all know: interest rates are higher. The cost of building is expensive. But that applies to everybody.
The main advantage is that 6-unit complexes distribute your expenses over more doors.
Let’s break it down:
- One roof, one foundation, one set of utilities.
- So now you have 6 streams of income rather than 1 or 2.
The outcome? Lower cost per unit and improved long-term cash flow.
If you include CMHC’s MLI Select financing in the equation, you have:
- One to 95% loan-to-cost
- 50-year amortization
- Low interest rates of approximately 3.8%–4
It’s a huge financing advantage when the bank prime rate is 7.2%.
3. There is Real Demand for This Type of Housing
This is not hypothetical.
Toronto’s rental vacancy rate is below 2%. The population is growing. Immigration targets are still high. And people need housing that’s safe, clean, and affordable—especially families, couples, and working professionals.
Not everybody desires to reside in a high-rise or basement unit. What is being sought by the marketplace is a nicely designed 6-plex with condos sized 500 to 900 sq ft.
You are not merely constructing for volume—you are closing an actual housing deficit.
4. Scarborough Is Where It’s Happening First
There are deep lots, bungalows, and lower-density neighborhoods in Scarborough just waiting to be gently infilled. And then there’s the clincher:
- Land remains relatively cheap (in relation to the rest of Toronto)
- Transit infrastructure is improving (new LRT lines coming)
- There is less NIMBY opposition in working-class communities
This is not about flipping. It is about developing 12 units on one severed lot, renting them out, and holding long term.
Cash flow + appreciation + debt paydown = real wealth.
5. Exiting Options Remain Available
As opposed to a condo or flip, a 6-plex offers you choices:
- Keep it and enjoy cash flow
- Refinance upon stabilisation to extract equity
- Sell to another investor who wants turnkey product
- You can even convert to condos down the road if policies change.
This is an adaptable, low-density, high-value property in an area where land is only becoming more scarce.
So Why Does It Work Now, But Not Forever?
Here’s the truthful reality: few are making these as of now.
- Large developers don’t bother—it is too tiny for them
- The mom-and-pop investors continue to purchase duplexes.
- Most people don’t even realize the rules have changed
That’s your edge.
Because once this is mainstream—and it certainly will be—land prices will skyrocket, trades will be sold out, and lending will become more stringent.
You’re early. And in real estate, early is everything.
bottom line: Don’t Sit on This
We already have 6-plex construction in Scarborough. We are subdividing lots and developing 12-unit cash-flow machines that don’t require rezoning, appeals, or condo exit plans.
It’s working. The figures add up. The demand exists.
If you’re an investor who wants to be part of this wave before it crests, now’s the time to move.