Why a Triplex in Laval Is One of the Smartest Investments You Can Make Right Now

Buying a triplex in Laval in 2022 turned out, two years later, to be one of the best financial decisions available. Not because the market was perfect, not because everything went exactly as planned, but because the fundamentals of the investment were sound.

This article explains those fundamentals. If you are considering your first income property, this is the framework to use.

The Calculation Most Investors Skip

Before anything else, let’s talk about the number that actually matters: the net operating income (NOI), also called the revenu net opérationnel (RNO).

Most people who look at an income property calculate the gross rent, meaning what all units would produce if fully occupied. That number is almost meaningless without context.

The real calculation is:

Gross annual income

• minus municipal and school taxes
• minus insurance
• minus maintenance and repairs (always budget 10-15% above your estimate)
• minus property management (even if you self-manage, include this)
• minus vacancy allowance (3-5%)

= Net Operating Income (NOI)

Then: NOI ÷ purchase price = capitalization rate (cap rate)

In the greater Montreal area, a cap rate of 4% to 6% is realistic for a well-priced plex. Below 3%, you are betting entirely on appreciation. Above 7%, something is wrong; find out what before proceeding.

This is the calculation that the seller’s listing sheet rarely shows you correctly. Always rebuild it from scratch using actual leases and real expense figures from the past two years.

Why a Triplex Specifically

The triplex hits a sweet spot that few other property types can match.

Financing: Up to 4 units qualifies for residential financing. You can put as little as 5% down if you occupy one of the units. That means the same financing terms as a personal home: better rates, better conditions, and access to CMHC insurance.

Living situation: Many investors start by living in one unit, letting the other two pay the majority of the mortgage. In a typical Laval triplex, two tenants cover approximately 80% of total carrying costs. The owner-occupant lives almost for free while building equity.

Simplicity: A triplex is manageable for a first-time landlord. You are not running a 20-unit building. You are managing two or three tenant relationships, which is meaningful but not overwhelming.

Resale market: Triplexes appeal to a wide range of buyers: other investors, families who want to live in one unit and rent the others, and multi-generational households. Demand is consistent.

Why Laval

Laval gets less attention than it deserves in the investment conversation. Here is what the data shows:

• Third-largest city in Quebec with over 450,000 residents
• Direct metro access via the orange line
• Purchase prices still below the Montreal island for comparable properties
• Rental vacancy rate consistently below 3%, a tight market that works in landlords’ favour
• Strong demand from families priced out of the island
• Active Arabic-speaking, French, and English communities generating diverse tenant demand

The price differential between Laval and Montreal island means your entry point is lower, your yield is often better, and your competition with other investors is somewhat reduced.

The Cash Flow Reality in Greater Montreal

Here is something many real estate content creators gloss over: immediate positive cash flow is rare in Montreal and Laval.

In markets where property prices are high relative to rents, you often end up in a slightly negative or cash-flow-neutral position, meaning you contribute $200 to $500 per month out of pocket after all expenses.

This is not a failure. Here is why:

1. Your tenants are paying down your mortgage principal every month
2. The property is appreciating in value
3. You are building an asset that generates increasing returns over time
4. The tax deductions on a rental property reduce your net cost

The full return on a Laval triplex over 10 years (when you account for appreciation, principal paydown, and rental income) typically runs between 8% and 12% annually. That is competitive with most financial products, with the added advantage of leverage.

The 8 Questions to Ask Before Making an Offer

Before submitting an offer on any income property, require answers to these eight questions:

1. What is the actual gross income, verified against signed leases?
2. What are the real expenses from the past two years (receipts, not estimates)?
3. When was the roof replaced and by which contractor?
4. Have there been any major mechanical systems replaced recently?
5. What are the current rents compared to the market rate?
6. Are there any open files at the Tribunal administratif du logement (TAL)?
7. Why is the seller selling now?
8. Are there any planned municipal projects nearby (road work, transit, development)?

The answers to these questions determine whether an investment makes sense, or whether you are inheriting someone else’s problem.

The Long Game

Here is the soundest way to think about a Laval triplex as a retirement strategy.

Buy a triplex at 40. Mortgage on 25 years. At 65, the mortgage is paid off, by your tenants.

At 65, you own an asset worth $1M+ (based on historical appreciation rates) that generates $3,000 to $5,000 per month in net rental income.

That is a private pension. Built with leverage, funded by others, requiring no government program.

The math takes time, but it works. The discipline to hold through market fluctuations and tenant challenges is what separates the investors who build wealth from those who sell too soon.

Thinking about your first income property in Laval or the greater Montreal area? Get in touch to have the numbers reviewed.

Georges Matar

Residential Real Estate Broker · RE/MAX DU CARTIER INC.

Contact Georges