Fourplex investment analysis
Four units mean four income streams and one shared property budget. Model each unit separately, then evaluate the combined operating income, debt and cash required.
Enter each unit’s rent
Add up to four main units and optional suites. Enter only income supported by the property’s leases or a clearly labelled estimate. Apply vacancy to the scheduled total and management to effective collected rent. Fixed property costs are entered once for the whole building.
Review who pays heat, water and electricity, and which costs are shared. Routine maintenance is modelled as a percentage of scheduled rent. A separate capital reserve provides a cash allowance for major future replacements.
A hypothetical fourplex comparison
The fourplex preset uses a $1,000,000 purchase price and four units at $1,800 monthly rent each. With 5% vacancy, effective annual rent is $82,080. It assumes $7,200 annual taxes, $3,600 insurance, $300 monthly owner-paid utilities, 8% management, 5% maintenance and 3% reserves.
These inputs are an illustration, not a listing, appraisal, financing quote or Calgary market average. The combined stress case reduces scheduled rent from $7,200 to $6,480 monthly and raises mortgage interest from 5% to 7%. Review the recalculated cash flow rather than assuming all four units remove vacancy risk.
Questions before a purchase
Confirm the property’s permitted use, condition, rent roll, tenancy details and lender requirements with qualified advisers. The calculator does not approve financing or determine legal suite status.
- How will turnover or arrears affect income?
- Are major systems or exterior repairs approaching?
- Does the operating budget include all shared utilities?
- Can the investment absorb the combined stress case?