Most Canadian investors start with a single-family rental or a duplex conversion. The hard part is not buying the first property—it is scaling into apartment buildings without blowing up underwriting, budgets, or investor trust.
On The Wisdom Lifestyle Money Show, mortgage expert Scott Dillingham sat down with Millan Jankovich to unpack that jump: how a decade of duplex and triplex conversions in Toronto led into multifamily in Kitchener, Cambridge, and a 107-unit Hamilton complex—and how CMHC MLI Select fits as a planned exit after stabilization.
Start small on purpose—then earn the right to scale
Millan’s path is familiar to a lot of Ontario investors. Roughly ten years ago, the team started buying single-family homes in Toronto with a clear plan: convert them into duplexes and triplexes, learn renovations and tenant operations, and put their own capital into deals before asking others to trust them.
That track record mattered. Without lender and investor confidence, jumping straight into larger apartment buildings is usually the wrong move—or it forces you into partnerships with operators who already have the playbook. Millan’s view is blunt: if you start from scratch, you either start relatively small or you partner with people who have already made the expensive mistakes.
If you are still on the early side of that curve, LendCity’s single-family to multifamily conversion guide and multifamily investing beginners guide map the financing and underwriting differences before you stretch into five-plus units.
Control the outcome: ops, construction, and governance
A recurring theme in the episode is control. Millan argues that real estate is not passive—and it becomes even less passive when you manage trades, timelines, tenant selection, and investor reporting yourself.
His team chose vertical integration: construction, property management, and development under one roof so renovations, timelines, and tenant decisions stay visible. That brings more management load, but it also reduces the “hope the GC and PM get it right” risk that sinks many partnership deals.
Governance shows up as a practical investor confidence tool, not a corporate buzzword. On larger projects—like the Hamilton complex Scott toured—board oversight, cleaner books, and financial controls are part of how the team protects investor capital while the value-add work is underway.
What value-add looks like on real buildings
Millan walked through Cambridge and Hamilton examples that show how value-add multifamily investing actually creates equity:
Cambridge — unit creation. An off-market vacant acquisition renovated existing suites and converted empty commercial/warehouse space into a ~1,000 sq ft residential unit with high ceilings and large windows—moving the building from three residential units to four and adding income that did not exist at purchase.
Cambridge — rent and NOI reset. An eight-unit building with rents roughly 100% below market was negotiated vacant over about 18 months (including helping tenants find new housing). After a premium renovation, rental income rose by around 300% and NOI roughly doubled.
Hamilton — scale plus density. A 107-unit complex across two buildings required a year of hands-on tenant work. One 73-unit building was emptied so the team could address electrical, plumbing, and livability issues—and pursue a permit path to add about 40 apartments by splitting oversized 1,200–1,300 sq ft units.
Those are classic forced-appreciation moves: more doors, higher market rents, and a cleaner income story for lenders. For the mechanics of turning NOI into refinance equity, see how to force appreciation in multifamily properties.
Plan the CMHC MLI Select exit before you buy
On the Hamilton project, Millan’s stated exit path is familiar to MLI-oriented investors: stabilize the asset, then take it to CMHC—specifically MLI Select—so investors can be paid out on the refinance.
That sequencing matters. Value-add work creates the NOI and product that lenders underwrite; MLI Select is the takeout tool, not a shortcut around underwriting, points, or stabilization. If you are modeling that refinance now, start with LendCity’s CMHC MLI Select multifamily guide and how to refinance an apartment building with CMHC.
Duplex and triplex conversions are still part of Millan’s “bread and butter,” especially in the current market—useful for partners who want smaller tickets while larger apartment deals continue in parallel.
Frequently Asked Questions
What is value-add multifamily investing in Canada?
How do investors scale from duplexes into apartment buildings?
Where does CMHC MLI Select fit in a value-add deal?
Are duplex and triplex conversions still worth doing?
Why do multifamily partnerships fail so often?
Is multifamily investing passive?
Disclaimer: LendCity Mortgages is a licensed mortgage brokerage. Content on this page is for educational purposes only and does not constitute legal, tax, investment, securities, or financial-planning advice. Rates, premiums, program terms, and regulations referenced are as of the page's last updated date and are subject to change. Any investment returns, rental yields, tax savings, or case-study figures shown are illustrative only — they are not guaranteed, not typical, and individual results will vary. Consult a licensed lawyer, Chartered Professional Accountant, or registered dealer before acting on any information above. Editorial standards.
Written by
Scott Dillingham
Published
July 22, 2026
Reading time
4 min read
Value-Add Property
A property with potential to increase value through renovations, better management, rent increases, or adding units.
Multifamily
Properties with multiple dwelling units, from duplexes to large apartment buildings. Often offer better cash flow and economies of scale.
NOI
Net Operating Income - the total income a property generates minus all operating expenses, but before mortgage payments and income taxes. Calculated as gross rental income minus [vacancies](/glossary/#vacancy-rate), property taxes, insurance, maintenance, and property management fees. NOI is used to calculate both [Cap Rate](/glossary/#cap-rate) and [DSCR](/glossary/#dscr).
CMHC MLI Select
A CMHC program offering reduced mortgage insurance premiums and extended amortization (up to 50 years) for multifamily properties with 5+ units that meet energy efficiency or accessibility standards. Popular among investors scaling into larger apartment buildings.
Forced Appreciation
An increase in property value driven by the owner's actions rather than general market conditions. Strategies include renovations, increasing rents, reducing [vacancies](/glossary/#vacancy-rate), or cutting operating expenses. In commercial real estate, raising [NOI](/glossary/#noi) directly increases the property's income-based appraised value. Key to the [BRRRR strategy](/glossary/#brrrr) and improving [ARV](/glossary/#after-repair-value-arv).
Duplex
A residential property containing two separate dwelling units, either side-by-side or stacked. Duplexes are popular among beginner investors because they can house-hack by living in one unit while renting the other to offset mortgage costs.
Property Management
The operation, control, and oversight of real estate by a third party. Property managers handle tenant screening, rent collection, maintenance, and day-to-day operations.
Refinance
Replacing an existing mortgage with a new one, typically to access equity, get a better rate, or change terms. Investors commonly refinance to pull out capital for purchasing additional properties (cash-out refinance) while retaining ownership of the original property.
Hover over terms to see definitions. View the full glossary for all terms.