Multiplex's which have 4+ doors are one of the most expensive and at the same time one of the most lucrative investments which can be made. Montreal has a strong rental market which has helped in maintaining this position.
If you're already searching for multiplexes, then you would know capitalization rate is one of the first things to look at.
- Low Cap rate: People sometimes see a low cap rate and assume it's a bad investment. Not always correct. As an investor you might be looking at a multiplex which has a 1% cap rate. This doesn't mean the building is a bad investment, maybe it was just mismanaged in the past and with some work/restructure, there are large profits to be made.
- High Cap rate: You've got money sitting in your back pocket and want to buy into something which is already established and well run. A higher cap rate is what most investors will look for. It means there will be less work put in to ensuring there is a healthy return being generated.
If you have the financial backing then a multiplex is a great investment in Montreal. If you are already working with a real estate broker, they will help you analyse all the aspects of buying a multiplex to find the right investment for you which meets your goals/objectives.