Definition
An income property (or 'plex') is a multi-unit residential property intended in whole or part for rental: duplex (2 units), triplex (3), quadruplex (4), and beyond for commercial buildings.
Financing rules:
- **1-4 units, owner-occupied**: CMHC residential mortgage financing possible with 5% down (1-2 units) or 10% (3-4 units). CMHC includes 50% of rental income from rented units in borrowing capacity calculation. - **1-4 units, pure investor (non-occupant)**: minimum 20% down payment (uninsurable). Lender calculates net rental income at 50-80%. - **5+ units**: commercial financing required, different rules (debt service coverage ratio, value based on capitalized income). Outside residential mortgage broker scope.
A plex value is assessed using both the direct comparison method (like a house) AND the income approach (value = capitalized net income). Both methods are used simultaneously by the appraiser.