How to choose the right plex among all those on the market
You have scrolled through dozens of listings, visited a few buildings, and nothing really stands out. That is normal: a plex is not chosen with the same feeling you have for a house. Three priorities, in the right order, are enough to separate a good building from one that just looks like a good deal.
Priority 1: location, location, location.
It is the old real estate saying, and it is still true today: location weighs more than the building’s condition in the long-term success of an investment. A flawless building in a stagnant area is often worth less over time than an ordinary building in a growing area.
Why it changes everything. A good location (close to public transit, jobs, schools, shops) guarantees constant rental demand: your units rent out quickly, with less vacancy to absorb. It is also what protects and grows the value of your building over time, no matter what you decide to do with it later: keep it, refinance it, or resell it. A well-located building is also easier to finance, because lenders know it will resell well if things go wrong.
What to look at concretely. The walking distance to a frequent transit stop, the presence of major employers or institutions (hospitals, universities, cégeps) nearby, the neighbourhood’s momentum (new shops, new residents, municipal projects), and how easy it is to park or get around if the area is more remote.
Priority 2: room for improvement.
The best building is not always the one that is already perfect: it is often the one where you can create value yourself, rather than waiting for the market to do it for you.
Spaces to transform. An unused basement, a forgotten attic, or a poorly used common space can sometimes become an extra unit, a storage space rented separately, or a paid laundry. Always check the municipal zoning before getting excited: it is what determines whether a conversion or unit addition is even allowed at that address.
Rents below market. A building where current rents are clearly lower than what the area rents for is a real opportunity to increase your income over renewals, within the rules of the TAL of course, rather than buying a building already rented at its maximum potential.
Renovations that pay back more than they cost. A dated kitchen or bathroom, an exterior cladding to refresh, or a neglected landscape are often the projects that, once done, justify both a higher rent and a resale value above the amount invested.
Why it is so strategic. A building with this room to manoeuvre lets you literally create value, rather than waiting for it to come from the market. That added value then becomes your best tool for a future refinancing: the faster the building gains value, the more equity you have available to finance your next purchase and grow your portfolio, without necessarily waiting years.
Priority 3: watch the competition around the building.
A building can be perfect on paper and still become hard to rent out, if the area fills up with new housing at the same time you are looking for tenants.
What to check before buying. The building permits filed with the city for nearby projects, the vacant lots that could host a development, and the number of active rental listings within a few blocks. An area where several new buildings deliver new units at the same time as yours can push rents down, or lengthen your rental timelines, even if your building is in excellent shape.
It is not a reason to avoid a growing area: on the contrary, a neighbourhood under construction is often a sign of stronger future demand. It is rather a reason to time your rental strategy with what is coming, and not to be surprised if competition is fiercer in the first year or two.
Two more criteria people forget too often.
The state of the major systems. A roof, plumbing or electrical system at the end of its life can turn a good deal into a money pit within the first year. A slightly more expensive building with recent systems often costs less in the end than a cheap building hiding major renovations to come.
The price-to-income ratio, to compare buildings quickly. By dividing the asking price by the annual rental income, you get a simple multiplier that lets you compare several buildings at a glance, before digging into the details. It is not the only number to look at, but it is an excellent first filter when you have a dozen listings in front of you.
Why these three priorities, at the core.
These three priorities are not just a checklist: they all point to the same goal. A good location protects and grows the value of your building over time. Room for improvement lets you create value yourself, faster than the market alone would, which opens the door to a refinancing to finance your next purchase. And watching the competition keeps that value from stalling due to a temporarily saturated local market.
Together, these three angles serve a single real purpose: a building that gains value reliably, refinances well when you need it, and becomes a springboard to the next building rather than an isolated project. That is exactly the long-term vision that separates a successful first purchase from a merely correct one.
What to remember.
There is no building that is perfect on every point at once: it is almost always a compromise between location, improvement potential, and the local market context. The right plex is not necessarily the most impressive to visit: it is the one that, once all these criteria come together, gets you closest to your goals, today and in five years.