A plex is a residential purchase and an income property at the same time. The lender wants the leases, the expenses, the value, the occupancy of each unit, and to know whether you can handle surprises.
Not all rents count the same
The lender may count part of the rental income, under its own rules. An advertised rent isn’t enough. It needs leases, history, expenses, sometimes a market check.
A vacant unit, a below-market rent or poorly documented expenses can change your qualification. The file should show a cautious picture, not a dream scenario.
Down payment depends on use
Living in one of the units isn’t reviewed the same as a pure rental purchase. Number of units, owner occupancy and insurance type can influence the requirements.
Property documents to request
| Property | Document | Risk checked |
|---|---|---|
| Condo | Syndicate and insurance documents | Fees, reserve and building risk. |
| Plex or rental | Leases and expenses | Income that can be used. |
| Cottage or commercial | Appraisal and property details | Use, access and lender comfort. |
A plex is financed with clean numbers. Not with rent you’re hoping for.
Plan for repairs
Roof, heating, units to freshen up, vacancy, upkeep: put them in your numbers. The lender reviews the risk, but you’re the one who’ll be running the building.
Where the file usually needs attention
These bars show which items deserve attention first; they are not a credit score or approval promise.
Clean documents reduce back-and-forth.
A realistic condition protects the offer.
Policy fit often matters as much as price.
- ✓Signed leases
- ✓Recognized income
- ✓Annual expenses
- ✓Vacant units
- ✓Down payment
- ✓Expected work